State RegulationsPA specificDifficulty 2/5
A consumer replaces an annuity contract with a new annuity issued by a different insurer with no insurer-group connection. Under 40 P.S. § 510D, what is the right-to-examine period?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 40 P.S. § 510D, Pennsylvania sets the annuity free look at 10 days with no replacement, 45 days when replacing with the same insurer or insurer group, and 20 days when replacing with a different insurer or insurer group. The consumer here is moving to an unrelated insurer, so the middle replacement tier applies: 20 days to examine the new contract and return it for a refund. Matching the tier to the replacement context is the skill the three-tier structure tests.
Why the other options are wrong
- A) Different-insurer replacements do not use the base period; the statute extends the window to 20 days.
- C) 45 days is reserved for same-insurer or same-insurer-group replacements; a different insurer gets 20 days.
- D) Pennsylvania does not use a single uniform period for replacements; the tiers differ by whether the replacement insurer is the same or different.
Memory hook
New insurer in the mix: 20 days, the different-insurer middle tier.