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California Insurance Code and replacing your insurance policy

The California Insurance Code and Code of Regulations imposes  specific requirements which must be adhered to by agents and insurers when a life insurance policy replacement or change is proposed.  Some of these rules are as follows:

  1. The agent must leave with the applicant an original or copy of all printed materials used for the presentation to the applicant.
  2. The insurance code permits the replacing insurer to request and receive a copy of a summary or ledger statement from your current insurer.  You may want to ask the replacing insurer to forward a copy of that ledger statement, as well as a ledger statement from the proposed replacing insurer, in order to make a comparison.
  3. An agent proposing the replacement or certain changes to a policy must provide a "Notice Regarding Replacement of Life Insurance" to the applicant.
  4. An agent or insurer may not recommend replacement or certain changes to a policy using materially inaccurate presentations or comparisons of policy premiums, benefits, or dividends, if any. 
  5. Agents and insurers must deliver a copy of the "Life Insurance Buyers Guide" and a copy of a policy summary to all those purchasing life insurance.  This required information must be provided no later than when the policy is delivered. 
  6. If you have second thoughts about purchasing a life insurance policy, the law provides for a free look period of ten days or more.  Senior citizens must be given a free look period of no less than thirty days.  Discuss the free look period with your agent or insurer before purchasing a life insurance policy.