State RegulationsGA specificDifficulty 1/5
The primary purpose of Georgia's life insurance replacement regulation, Reg. 120-2-24, is to:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Reg. 120-2-24 (together with O.C.G.A. § 33-24-6.1) is a consumer-protection regulation: its notice, list-of-policies, signed-statement, and recordkeeping requirements exist so that a Georgia policyholder can make an informed comparison between the old policy and the proposed one before giving up existing coverage. The regulation does not ban replacements; it disciplines how they are solicited and documented.
Why the other options are wrong
- A) The regulation does not prohibit replacements; it regulates the process through disclosure and documentation.
- B) Producer commission is not the regulation's purpose; its requirements exist to inform the policyholder, not to enrich the seller.
- D) Rejections must follow normal underwriting; the regulation grants no right to reject replacement applications without explanation.
Memory hook
Replacement rules = informed comparison, not a replacement ban.