California Life Insurance & Annuity Law — California Insurance Law — Life & Health Practice Test
28 questions in this topic · 28 drawn at random this round
Under Cal. Ins. Code §10113.2, a life settlement broker owes a fiduciary duty to act in the best interest of:
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This California Insurance Law — Life & Health California Life Insurance & Annuity Law practice set has 28 practice questions based on the official exam materials, each with an instant explanation.
Sample questions
Three questions from the California Life Insurance & Annuity Law bank with the correct answer and an explanation. The practice quiz above draws 28 questions at random from the same bank.
A 45-year-old applicant is issued an individual life insurance policy in California. Under Cal. Ins. Code §10127.9, how many days does the policyowner have to examine the policy and return it for a full refund of premium?
- 10 days — Correct answer
- 20 days
- 30 days
- 60 days
Explanation: Cal. Ins. Code §10127.9 gives an individual under age 60 a 10-day free-look/right-to-cancel period on an individual life insurance policy. (Cal. Ins. Code §10127.9)
Handbook: California Life Insurance & Annuity Law — Free-Look (Under Age 60)
A 38-year-old policyowner returns a newly issued individual life insurance policy within the free-look period under Cal. Ins. Code §10127.9. What is the insurer required to do?
- Refund the full premium paid, treating the policy as if it had never been issued — Correct answer
- Refund the premium minus a standard surrender charge
- Convert the policy to a reduced paid-up policy instead of refunding premium
- Refund only 90% of the premium paid as an administrative fee
Explanation: Timely cancellation during the §10127.9 free-look period entitles the policyowner to a full refund of premium paid, and the policy is void from the beginning. (Cal. Ins. Code §10127.9)
Handbook: California Life Insurance & Annuity Law — Free-Look (Under Age 60)
An applicant who is 62 years old purchases an individual life insurance policy in California. Under Cal. Ins. Code §10127.10, the free-look/right-to-cancel period for this policyowner is:
- 30 days — Correct answer
- 10 days
- 20 days
- 45 days
Explanation: Cal. Ins. Code §10127.10 provides a longer, 30-day free-look period for an individual who is 60 years of age or older at the time of policy issuance, versus 10 days under §10127.9 for those under 60. (Cal. Ins. Code §10127.10)
Handbook: California Life Insurance & Annuity Law — Free-Look (Age 60 or Older)