State RegulationsNC specificDifficulty 1/5
During a replacement transaction in North Carolina, an existing insurer asks the replacing insurer for a copy of the illustration or policy summary used in the sale. Under 11 NCAC 12 .0612(a)(2), within what period must the replacing insurer mail it?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under 11 NCAC 12 .0612(a)(2), the replacing insurer's information-sharing duty runs in both directions: it must notify each affected existing insurer within 5 business days of receiving a completed application indicating replacement, and it must mail the illustration or policy summary to an existing insurer within 5 business days of that insurer's request. The request-triggered copy lets the existing insurer compare the proposed coverage and protect its policyholder.
Why the other options are wrong
- A) Ten calendar days overstates the window; the rule allows five business days from the request.
- B) Thirty days belongs to the applicant's right to return a replacement policy, not to the existing insurer's copy request.
- C) Premium payment never starts this clock; the five-business-day period runs from the existing insurer's request.
Memory hook
Asked for the paperwork? Five business days to send it.