State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
For a 45-year-old consumer who purchases an individual fixed annuity in California, the free-look cancellation period stated in the policy must be:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Section 10127.9, individual life insurance policies and annuity contracts issued in California must allow a cancellation period of not less than 10 days nor more than 30 days, as set by the insurer and clearly stated in the notice. The insurer selects a number in that range. The enhanced at-least-30-day rule of Section 10127.10 applies only to senior citizens aged 60 and older.
Why the other options are wrong
- B) Thirty days is the minimum for senior citizens under Section 10127.10; consumers under 60 fall under the 10-to-30-day window of Section 10127.9.
- C) The statute sets a 10-day minimum and 30-day maximum; the insurer may choose any figure within that range, not a mandatory 10 days.
- D) Sixty days is the grace period for premium payment under Section 10113.71, not the under-60 free-look window.
Memory hook
Under 60: free look lives in the 10-to-30 corridor. Over 60: the floor jumps to 30.