State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Section 10113.72, before an individual life insurance policy may lapse for nonpayment of premium, the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10113.72 requires that, before any individual life insurance policy lapses or is terminated for nonpayment of premium, the insurer give at least 30 days' notice to the policyowner AND to any additional person the applicant designated on the lapse-notice form to receive notice. The insurer must provide the designation form at application and notify the owner annually of the right to designate someone. Notice is sent by first-class mail within 30 days after a premium is due and unpaid, protecting insureds from unintentional loss of coverage.
Why the other options are wrong
- B) The notice must precede the lapse by at least 30 days; notifying after lapse defeats the protection.
- C) No court order is involved; the statute sets the notice requirement directly.
- D) The notice goes to the owner and the designee, not to the Commissioner, and the lead time is 30 days, not 60.
Memory hook
No-lapse surprise rule: 30 days' notice to the owner and to your designated backup contact.