State RegulationsPA specificDifficulty 1/5
Under 40 P.S. § 510D, what is the standard right-to-examine (free look) period for a Pennsylvania fixed-dollar annuity when no replacement is involved?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Pennsylvania's free-look law for annuity contracts, 40 P.S. § 510D(a), gives the owner the standard right to examine a fixed-dollar annuity for 10 days after delivery and to return it for a refund. The 10-day figure is the base tier; it applies when the annuity is a new purchase with no replacement involved. Pennsylvania's tiered structure extends the period for replacements, which is why candidates must never answer with a single generic free-look number.
Why the other options are wrong
- B) 20 days is the tier for replacement with a different insurer or insurer group, not the standard no-replacement period.
- C) 45 days is the tier for replacement with the same insurer or insurer group, not the base period.
- D) 30 days is not the Pennsylvania standard free-look period for an annuity; the base right to examine runs 10 days under 40 P.S. § 510D(a).
Memory hook
No replacement, 10 days: the base free look before any replacement bonus is added.