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. Existing law provides that these provisions apply to all policies issued, amended, or delivered on or after January 1, 1981, as specified. 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. The bill would provide that the notice, return, and refund requirements apply to all policies issued, amended, or delivered on or after January 1, 2011, and would require that all policies in effect on January 1, 2011, be construed to be in compliance with those provisions.