AB 2347 Summary

• Requires disability and life insurance policies for individuals 65+ to display cancellation rights notice in 12-point bold type on the front of the policy jacket or cover page, allowing return by mail or other delivery method within 30 days for full refund of premiums and fees.

• Mandates prorated premium refunds for individuals 60+ if they cancel group term life insurance within 30 days when more than one month's premium was collected at application or delivery.

• Requires individual life insurance policies and annuity contracts to print cancellation rights notice on the front of policy jacket or cover page, specifying the 10-30 day cancellation period and refund terms.

• Expands surrender charge disclosure requirements for senior citizens' policies to include charges upon partial surrender and excess withdrawal, with notice in 12-point bold print on policy front or cover page disclosing location, time period, and penalty information.

• All provisions become operative July 1, 2015, with conforming changes to disclosure language regarding variable and modified guaranteed contracts.