State RegulationsAZ specificDifficulty 1/5
The practical purpose of the annuity free-look provision in A.R.S. 20-1233 is to let the contract holder:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-1233, the annuity free look gives the contract holder time after delivery to review the contract's terms and return it for a full refund — 10 days generally, or 30 days for holders age 65 or older at application. The provision protects buyers from high-pressure sales by preserving a no-consequence exit, and it operates alongside, not instead of, Arizona's annuity sales-conduct requirements.
Why the other options are wrong
- B) The free look allows cancellation and refund, not a cost-free transfer of the contract to another insurer.
- C) The return window does not suspend or replace annuity sales-conduct requirements; they apply independently of the free look.
- D) Conversion from an annuity to a life policy is not part of the free-look right under A.R.S. 20-1233.
Memory hook
Free look = read it, then keep it or return it whole.