State RegulationsFL specificDifficulty 2/5
During a Florida replacement transaction, what must the agent do with the replacement statement?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under F.A.C. 69B-151.007, the replacing insurer must obtain a replacement statement signed by both the applicant and the agent, submitted with the application, along with Form OIR-B2-312 and all sales proposals. The agent's role is to deliver the notice of replacement, explain its consequences to the applicant, and co-sign the statement. Forwarding the B2-312 copy to the existing insurer is the replacing insurer's immediate duty, not something the agent does later.
Why the other options are wrong
- B) The records must be maintained by the insurer for at least 3 years; personal files alone do not satisfy the rule.
- C) No DFS pre-approval of the replacement statement is required; the filing chain runs through the insurers.
- D) The B2-312 goes to the existing insurer immediately upon receipt by the replacing insurer, not after issuance.
Memory hook
Agent and applicant sign together, up front.