A 70-year-old Mesa resident buys an annuity, and the contract is delivered on the first of the month. On day 25 after delivery she asks to return the contract for her money back. Under A.R.S. 20-1233, what must the insurer do?

Why D is correct

Under A.R.S. 20-1233, a contract holder who was age 65 or older on the date of application may return the annuity within 30 days after delivery for a full refund. This applicant was 70 at application, so her return on day 25 is timely and the insurer must refund everything paid — no surrender charges, deductions, or account-value substitutions are permitted on a timely statutory return.

Why the other options are wrong

• A) The general 10-day window does not govern; the age-graded 30-day window applies to a holder who was 65 or older at application.
• B) A separate-account refund formula applies to variable annuities returned in the window, and even then it reconstructs the full refund; it is not a reduced payout.
• C) No surrender charge may be deducted from a refund due under the statutory free-look return.

Memory hook

Senior at application, 25 days in — the 30-day window still saves the refund.