Under California Insurance Code Section 785, insurers and agents owe a prospective insured aged 65 or older:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 785 provides that all insurers, brokers, agents, and others engaged in the transaction of insurance owe a prospective insured who is 65 years of age or older a duty of honesty, good faith, and fair dealing, in addition to any other express or implied duty. Conduct during the offer and sale of a policy before purchase is relevant to any later action alleging breach of that duty. The senior-protection article responds to concerns about inappropriate sales to older consumers and sets behavioral standards, but it does not create cancellation rights, exempt seniors from underwriting, or freeze premiums.
Why the other options are wrong
- B) Section 785 does not create a cancellation right; cancellation rights depend on policy terms and statutes such as the free-look and 60-and-older rules.
- C) Seniors are not exempt from underwriting; the article imposes duties of fair dealing, not exemption from risk classification.
- D) The article does not guarantee level premiums; it requires honest dealing in the transaction.
Memory hook
Age 65 plus: the agent's word must be as good as the policy, honesty, good faith, and fair dealing.