An insurer is delivering a life insurance policy to begin the statutory free-look (cancellation) period. Under California Insurance Code Section 10113.6, acceptable delivery methods include:

Why A is correct

Section 10113.6 requires that a policy meant to start the statutory cancellation (free-look) clock be delivered by registered or certified mail, by personal delivery with a signed written receipt, by first-class mail with a signed written receipt, or by other reasonable means approved by the Commissioner. If the insurer does not use an acceptable method, it bears the burden of proving delivery in any dispute. A policy is also deemed received six months after issuance if premiums have been paid.

Why the other options are wrong

• B) Delivery without a signed receipt does not satisfy the statute and shifts the burden of proof onto the insurer.
• C) First-class mail is acceptable only with a signed written receipt of delivery; unacknowledged mail fails the statutory method.
• D) Handing the policy to a third party such as a neighbor is not a prescribed delivery method and does not start the cancellation clock.

Memory hook

Signed receipt or certified mail — the insurer must prove the free-look clock started.