State RegulationsAZ specificDifficulty 3/5
A producer compares free-look rights for two products she sells in Arizona: a long-term care policy and an annuity bought by a client who is younger than the threshold for the extended annuity period. Which comparison is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1691.07 gives LTC policyholders 30 days after delivery to return the policy for a full premium refund, while A.R.S. 20-1233 gives annuity contract holders a 10-day return right — extended to 30 days only when the contract holder is age 65 or older at application. A younger annuity client gets 10 days; the LTC client gets 30.
Why the other options are wrong
- B) The LTC free look is 30 days in every case, and the annuity window is 10 days only for contract holders below the age threshold.
- C) This swaps the two products; LTC is the 30-day right, and the annuity's 30-day window applies only to older contract holders.
- D) Both products carry express statutory return rights; no insurer courtesy is involved.
Memory hook
LTC thirty, annuity ten — unless the annuity buyer is sixty-five plus.