State RegulationsGA specificDifficulty 2/5
A Georgia producer is handling the replacement of a client's individual life policy. Under Georgia's replacement regulation, which of the following is the producer required to do?
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Why B is correct
Under Reg. 120-2-24-.05, the replacing agent must obtain a signed replacement statement with the application, provide the applicant a replacement notice and leave it with the applicant, obtain a list of the existing life policies to be replaced, and submit copies of the materials to the replacing insurer. These disclosure duties allow the existing insurer to search its records and protect the applicant from an unsuitable swap of coverage.
Why the other options are wrong
- A) The agent never takes possession of or cancels the existing policy; surrender remains the policyowner's own decision.
- C) Georgia's replacement regulation requires disclosure and notice, not prior written approval from the Commissioner.
- D) There is no requirement in the replacement rule that the agent refund any commission.
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