State RegulationsFL specificDifficulty 2/5
Which statement about recordkeeping duties in replacement transactions is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under F.A.C. 69B-151.007 and 69B-151.008, both the replacing insurer and the existing insurer must retain replacement transaction records for at least 3 years. The replacing insurer keeps the signed statements, notices, and proposals, while the existing insurer keeps records of the notices it receives so regulators can reconstruct the transaction.
Why the other options are wrong
- A) The agent's personal files do not satisfy the insurers' independent retention obligations.
- B) Issuance is not the end of the retention period; the multi-year rule continues after issuance.
- C) The existing insurer is not the only party with records; the replacing insurer has equal obligations.
Memory hook
Replacement paperwork: both insurers file it for 3 years.