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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.

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