LEGISLATIVE COUNSEL'S DIGEST


SB 1405, as introduced, 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.