Legal Question in Insurance Law in California

Insurance Buyers Remorse

I signed up for a life insurance plan today through a financial planner which I feel I was somewhat pressured into.

Within two hours after signing up for the plan and after discussing the advantages and disadvantages with my family, I have decided that this type of life insurance is definately not the best place to invest my money at this time in my life.

At age 23, being some what ignorant when it comes to investing and finances, my family and I feel that my best interests were not in his mind and his commissions were.

I called and left him a message on his business line just a few minutes ago to inform him that i do not want to go through with the plan and I want to cancel the contract. I am also going to fax him a letter tomorrow with my cancellation with my signature.

My questions are... Since I have yet to invest/pay for this service, how long do I have to cancel a contract on a life insurance plan and how would i go about making sure it is fully cancelled before I am obligated to the contract?

I heard that you have 48 hours to cancel a contract such as this but I want to hear it from a law professional.

I really appreciate any feedback I recieve from those reading this post.


Asked on 10/08/04, 11:40 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Insurance Buyers Remorse

California Ins. Code Secs. 10127.7 and 10127.9 require the insurer to give an insured between 10 and 30 days from the policy issuance to cancel and undo the transaction. But I suggest you immediately - not tomorrow - write and fax, so you get a receipt, a notice you have rescinded and decided not to purchase/invest. Send it to the salesperson, and the insurer. And if you are pestered, just firmly say any further communications with you need to be in writing.

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Answered on 10/12/04, 2:14 pm


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