Under CIC §10113.6, which is an acceptable method of delivering a life insurance policy so that the cancellation (free look) period begins?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10113.6 lists acceptable delivery methods: registered or certified mail; personal delivery with a signed, written receipt; first-class mail with a signed, written receipt; or other reasonable means approved by the commissioner. A signed receipt proves the policy was delivered so the free-look period can start running. If the insurer uses a method not on the list and a dispute arises, the burden of proof is on the insurer to establish delivery. The receipt-based methods protect both the insurer and the policyowner by creating clear evidence of when the policy reached the owner's hands.
Why the other options are wrong
- B) Delivery to a neighbor provides no receipt or proof and is not an approved method; the policy could never be shown to have reached the owner. Approved methods all involve documented delivery to the owner.
- C) Website posting alone is not an approved delivery method under the statute, which contemplates receipt-based delivery to the owner. Electronic methods would require commissioner-approved reasonable means, and the insurer must still obtain a signed receipt showing the policy was delivered.
- D) First-class mail without a signed receipt does not satisfy the statute's proof requirement and shifts the burden of proof to the insurer. A signed receipt is the linchpin of approved mailing methods.
Memory hook
Delivery needs a receipt, period. No receipt means the free-look clock never starts.