State RegulationsNC specificDifficulty 1/5
Under 11 NCAC 12 .0612(a)(2), after receiving a completed life insurance application that indicates replacement of existing coverage, the replacing insurer must notify each affected existing insurer within:
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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 must notify each affected existing insurer within 5 business days of receiving a completed application indicating replacement, or when the replacement is otherwise identified. The replacing insurer must also mail the illustration or policy summary within 5 business days of an existing insurer's request.
Why the other options are wrong
- A) 30 business days is far too long; the rule fixes 5 business days for existing-insurer notice.
- B) 15 days is the copy-to-producer termination-notice period under G.S. 58-33-56 and does not govern replacement notices.
- C) 10 business days matches the standard free-look period, not the replacement notice deadline.
Memory hook
Replacement notices move fast: 5 business days to warn the old insurer.