Life insurance.

(1) Existing law regulates the sale of life insurance to seniors, including annuities, as specified. Existing law requires a person who meets with a senior in the senior's home regarding the sale of life insurance to deliver a notice in writing to the senior no less than 24 hours prior to that individual's meeting, and to abide by other restrictions regarding contacting the senior in the senior's home. This bill would specify that the above notice could be provided at the time of the meeting in the senior's home and that the other provisions do not apply if the meeting concerns the sale of life insurance designated by the purchaser as payment for funeral and burial expenses, the life insurance policy has an initial face amount of $15,000 or less, the policy provides a "free look" period in which the purchaser has 60 days to cancel the policy and be refunded payments made, and the seller is licensed, as specified. The bill would require the issuer of one of these policies exempted from the provisions requiring 24-hour advance notice and related requirements to provide a written notice of the purchase and the 60-day right of cancellation with specified content to the senior and certain other persons, except as specified. (2) Existing law provides that life insurance policies with a face value of less than $10,000, issued after July 1, 1974, shall 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. Existing law requires that, if the policy is returned, all premiums paid and any policy fee paid for the policy be refunded to the owner. This bill would provide that a life insurance policy with a face value of $15,000 or less, issued after January 1, 2010, shall contain a notice permitting the return of the policy within not less than 10 days nor more than 30 days, provided that for a policy relating to funeral and burial expenses described in (1) above, if certain notice requirements are not met, the right of return shall last 60 days. The bill would require that a refund of premiums and any policy fee be made not later than 30 days after the date that the insurer is notified that the insured has canceled the policy.