California Life-Only & Accident and Health AgentCalifornia Law - Life and Accident & HealthMedium
An agent is assisting a senior client (age 65) with an annuity purchase. Under California law, what is the minimum free look period that must be provided for this annuity contract?
- A60 days
- B30 days
- C10 days
- D20 days
Show answer & explanationAnswer & explanation
Correct answer: B. 30 days
While most life insurance policies have a 10-day free look period, California law mandates a longer 30-day free look period for annuities and life insurance policies sold to seniors (age 60 or older).
Why the other options are wrong
- A. 60 days is longer than the minimum required, though an insurer could offer it, it's not the legal minimum.
- C. 10 days is for general life insurance policies, not annuities or senior-specific policies.
- D. 20 days is not a standard free look period in California for annuities or senior policies.
Annuity/Senior Free Look (CA)
In California, annuities and life insurance policies sold to seniors (age 60+) are subject to a minimum 30-day free look period.
- Applies to annuities regardless of applicant age.
- Applies to life insurance for applicants age 60 and over.
- Allows more time for review due to complexity or vulnerability.
Memory trick: Look longer for seniors and annuities.