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. The bill would specify that the above notice, including an additional statement regarding the senior's rights, may be provided at the time of the meeting in the senior's home when the meeting concerns the sale of life insurance designated by the purchaser as payment for funeral and burial expenses if the life insurance policy has an initial face value amount of $15,000 or less. The bill would also require, within 14 days of the purchase of that type of life insurance or annuity by a senior, that the issuer of the policy provide by first-class mail a written notice of the purchase and notice of a 60-day right of cancellation with specified content to the senior and certain other persons. The bill would prohibit the insurance salesperson who meets with a senior in the senior's home to sell that type of life insurance or annuity to sell any other insurance policies or annuities without providing the required 24-hour advance notice. (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 days nor more than 30 days. This bill would provide that a life insurance policy with an initial face value of $15,000 or less 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, the right of return shall last 60 days when the 24-hour advance notice is not delivered.