State RegulationsFL specificDifficulty 3/5
Which of the following transactions is exempt from Florida's replacement notice requirements under Fla. Stat. 627.4605?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 627.4605, the replacement rules do not apply when the policyowner exercises a contractual right in the existing contract with the same insurer, when the replacement occurs under a plan filed with and approved by the same insurer, or when a conversion privilege operates between affiliated insurers. Exercising the policy's own increase option with the same insurer fits the first exemption, so no replacement notice is required.
Why the other options are wrong
- B) Moving coverage from one insurer to a new policy with another is the paradigm replacement and requires the notice.
- C) The conversion-privilege exemption applies between affiliated insurers; a conversion involving an unaffiliated insurer does not qualify.
- D) Replacing group coverage with a new individual policy from a different insurer is a replacement subject to the rules.
Memory hook
Same contract, same insurer: no replacement notice.