LEGISLATIVE COUNSEL'S DIGEST


SB 1405, as amended, Committee on Banking, Finance and Insurance.
Life insurance: premium refunds.
Existing law requires that life insurance policies with a face
value of less than $10,000, issued after July 1, 1974, contain a
notice permitting the return of the policy within a period of time
designated in the notice, which may not be less than 10 or more than
30 days. If the insured cancels the policy within the given time
period, all premiums paid and any policy fee paid for the policy are
required to be refunded to the owner.
This bill would require that the refund be given within 30 days
from the date that the insurer is notified that the insured has
canceled the policy. The bill would provide that the notice,
return, and refund requirements apply to all policies issued,
amended, or delivered on or after January 1, 2011, and would require
that all policies in effect on January 1, 2011, be construed to be in
compliance with those provisions.

---

Comments/questions on SB 1405 (Committee on Banking, Finance and Insurance): Life insurance: premium refunds.