State RegulationsAZ specificDifficulty 2/5
A 60-year-old Tucson contract holder returns an annuity 15 days after delivery and demands a refund. Under A.R.S. 20-1233, what is the status of the statutory free-look right?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1233, a contract holder who was under 65 on the date of application has only the general 10-day window after delivery to return the annuity for a full refund. A return on day 15 falls outside that window, so the statutory free-look right has expired and the insurer is not obligated to refund under the free-look provision. The extended window was never triggered because the holder was under 65 at application.
Why the other options are wrong
- A) The 30-day window is reserved for holders age 65 or older at application; it is not universal.
- C) A producer cannot extend or waive the statutory deadline; the free-look window is fixed by A.R.S. 20-1233.
- D) The age test is measured on the date of application, not at delivery, so this holder never qualified for the longer window.
Memory hook
Under 65 at signing means 10 days — day 15 is one day too late.