Free-look cancellation rights by applicant age

Identify age, product, and transaction

A free look lets an owner review a newly received policy and return it for cancellation under the applicable refund rules. For California's senior life and annuity free-look protection, senior means 60 or older, not 65. An ordinary nonreplacement individual life policy for a purchaser under 60 generally provides a stated return period of at least 10 and no more than 30 days. Replacement transactions have separate protections; do not apply that ordinary range without checking the transaction.

Senior cancellation rights

California Insurance Code section 10127.10 requires a notice on the front of the policy jacket or cover page for a senior's individual life policy or annuity. It specifies at least 30 days after receipt. Return may be by mail or another delivery method to the insurer or selling agent. Application and premium-payment dates do not start this receipt-based clock.

Determine the refund

For senior nonvariable life insurance and nonvariable annuities, including modified guaranteed annuities, the statutory notice describes return within 30 days for a full refund. Later surrender may involve a contract charge.

For senior variable life insurance and variable annuities, premiums during the 30-day period stay in fixed-income investments and money-market funds unless the owner specifically directs investment in underlying mutual funds.

• No mutual-fund direction: timely return voids the policy from inception; premiums and any policy fee are refunded within 30 days after the insurer receives notification of cancellation.
• Owner directs mutual-fund investment: the refund is account value plus any policy fee, so investment losses may affect recovery. Account value must be refunded within 30 days after notification.

Keep the owner's return clock separate from the insurer's refund clock. Read the actual notice and transaction facts; no single day count applies to every age, product, and transaction.