Connecticut Life Producer Practice exam

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How many days after the receipt of life settlement proceeds can life settlement contracts be rescinded?

10 days
15 days
30 days
60 days

The correct answer is: 15 days

The correct time frame for rescinding life settlement contracts after the receipt of life settlement proceeds is 15 days. This specific period is designed to provide individuals with a reasonable opportunity to reconsider their decision after receiving the proceeds from the life settlement. During this 15-day window, the policyholder has the option to rescind the contract, allowing them to cancel the agreement without any penalties. This protection is particularly crucial as it offers an additional layer of consumer rights, ensuring that individuals can thoroughly review their financial situation and the implications of their decision post-settlement. Understanding this duration is important for those involved in the life insurance and settlement process, as it reflects the legal framework aimed at protecting consumers from rash or uninformed decisions. Knowing that individuals have this period to change their mind can also influence how they view the transaction overall.