State RegulationsCO specificDifficulty 3/5
The owner of a variable life policy delivered in Colorado Springs returns the policy during the free-look period. Under C.R.S. § 10-7-302(1)(g), what refund applies?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
For variable life, C.R.S. § 10-7-302(1)(g) sets the free-look refund at the account value as of the return date plus policy fees, because the separate account's value fluctuates with market performance rather than returning the full amount of premiums paid.
Why the other options are wrong
- A) The full-premium refund is the ordinary life rule; variable life returns account value plus policy fees.
- B) Variable life policies are subject to the free-look rule like other life policies.
- D) The statute specifies account value plus policy fees; there is no Division-set surrender penalty in the free-look calculation.
Memory hook
Variable life gives back account value plus fees, not premiums.