Connecticut Life Producer Practice exam

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What is the maximum period allowed for rescinding a life settlement contract after proceeds are received?

10 days
15 days
30 days
90 days

The correct answer is: 15 days

The maximum period allowed for rescinding a life settlement contract after the proceeds are received is 15 days. This regulation is designed to protect consumers, providing them with a grace period in which they can reconsider their decision to enter into a life settlement transaction. During this time, individuals have the opportunity to evaluate whether this arrangement aligns with their financial goals and needs. If they choose to rescind the contract within this 15-day window, they are usually entitled to receive their original policy back or an appropriate resolution as per the terms of the law. Understanding this timeline is crucial for individuals engaging in life settlements, as it offers them a safeguard against hasty decisions that might have long-term financial implications. This specific duration reflects legislation aimed at ensuring transparency and fair practices within the industry.