A variable life policy delivered in Aurora is returned by the policyholder during the 15-day free-look period. Under C.R.S. § 10-7-302(1)(g), what refund is due?

Why B is correct

C.R.S. § 10-7-302(1)(g) gives Colorado life policyholders a 15-day right to return the policy for a refund of premium, but for variable life the refund is measured differently: the account value as of the return date, plus policy fees. Because the policyholder's money is held in a separate account whose value fluctuates with the investments, the statute refunds what the account actually holds rather than a fixed premium figure. The free-look right itself still applies fully to variable life.

Why the other options are wrong

• A) Dividend credits are not part of the variable life refund; the measure is account value plus policy fees.
• C) Surrender charges do not reduce the free-look refund; the statute sets the measure as account value plus policy fees.
• D) Variable life policyholders do have the free-look right; only the refund formula differs from ordinary life insurance.

Memory hook

Variable refunds what the variable account holds — value plus fees, not flat premium.