State RegulationsPA specificDifficulty 3/5
A Pennsylvania consumer replaces her annuity with a new annuity contract issued by the same insurer that issued the current contract. Under the free-look tiers of 40 P.S. § 510D, what right-to-examine period 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 D is correct
Pennsylvania tiers the annuity free look under 40 P.S. § 510D: 10 days standard, 20 days for replacement with a different insurer or insurer group, and 45 days when the replacement is with the same insurer or insurer group. Because the consumer's new contract comes from the same insurer, the 45-day tier applies, giving her the longest review window. The extended tier reflects the extra scrutiny Pennsylvania demands when an insurer replaces its own product.
Why the other options are wrong
- A) 10 days is the standard base period with no replacement; a same-insurer replacement extends the window to 45 days.
- B) Replacement never shortens the window below the standard, and a same-insurer replacement lengthens it to 45 days, not 20.
- C) The grace-period figure is unrelated to the free look; the same-insurer replacement tier is 45 days under 40 P.S. § 510D.
Memory hook
Same insurer, longer look: 45 days to reconsider replacing your own product.