State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Before an individual life insurance policy may be terminated for nonpayment of premium in California, the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10113.71(b) requires at least 30 days' notice before a policy is terminated for nonpayment of premium. Section 10113.72 requires that applicants be given the right to designate at least one additional person to receive notices of lapse or termination, and the insurer must mail the notice to the policyowner and to that designee. These rules, added by AB 1747, protect consumers from unintentional lapses of coverage.
Why the other options are wrong
- B) The beneficiary is not the required notice recipient; the notice must go to the policyowner and any designated person, not to the beneficiary.
- C) The statutory notice standard is 30 days prior to termination, not a 90-day waiting period.
- D) The insurer's statutory duty controls; the agent's permission plays no role in the lapse-notice requirement.
Memory hook
Lapse notice = 30 days to the owner and their chosen backup person. California wants no silent lapses.