State RegulationsFL specificDifficulty 2/5
A Florida life agent takes an application that will replace the applicant's existing policy. What must the agent obtain under the Florida replacement rules (F.A.C. 69B-151.007)?
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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, the replacing insurer must obtain with the application a replacement statement signed by both the applicant and the agent; the agent's role is to present the notice to the applicant, secure the applicant's signature, and sign it as well. This dual-signed statement alerts the replacing insurer, the existing insurer, and any later DFS review that a replacement is taking place.
Why the other options are wrong
- A) The existing insurer's consent is not required; it receives notice, not a veto over the transaction.
- C) Comparative information comes later, through Form OIR-B2-313, and only upon request.
- D) Free-look rights cannot be waived by an applicant's signature.
Memory hook
Two signatures on the replacement statement, every time.