State RegulationsFL specificDifficulty 1/5
Under Florida's replacement rules, what must accompany an application that will replace an existing life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under F.A.C. 69B-151.007, in a replacement transaction the replacing insurer must obtain with the application a statement signed by both the applicant and the agent listing the policies or contracts proposed to be replaced. The agent's job is to present the required replacement notice and secure those signatures, which creates the auditable paper trail the DFS reviews in market-conduct examinations.
Why the other options are wrong
- A) The Buyer's Guide is a general disclosure; replacement specifically requires the dual-signed replacement statement.
- C) A verbal acknowledgment leaves no record; the rule requires signatures from both applicant and agent.
- D) The existing insurer receives the notice but its consent is not a precondition to replacement.
Memory hook
Replacement = two signatures on one statement: applicant plus agent.