In a North Carolina life insurance replacement, which duty falls on the producer under 11 NCAC 12 .0605?

Why B is correct

Under 11 NCAC 12 .0605, the producer in a replacement must ask whether the transaction will replace existing coverage, present and read the Notice Regarding Replacement to the applicant and obtain the applicant's signature, list the existing policies to be replaced, and forward the signed notice to the replacing insurer with the application. The producer gathers the disclosure paperwork that triggers the replacing insurer's duties under 11 NCAC 12 .0612.

Why the other options are wrong

• A is wrong because the notice is not a private filing; it must go forward with the application so the replacing insurer can discharge its notification duties.
• C is wrong because the Commissioner does not pre-approve replacement notices; the regulation routes the signed notice through the replacing insurer.
• D is wrong because delaying delivery until after 30 days defeats the purpose; the notice must accompany the application before the transaction is completed.

Memory hook

The producer carries the notice: signed, listed, and forwarded with the application.

Why D is correct

Under 11 NCAC 12 .0612(a)(2), the replacing insurer must notify each affected existing insurer within five business days of receiving a completed application indicating replacement, or otherwise upon identifying that a replacement is involved, and must mail the illustration or policy summary within five business days of an existing insurer's request. Prompt notice lets the existing insurer protect its policyholder's interests.

Why the other options are wrong

• A) The 30-day period is the policyholder's return right in a replacement transaction, not the deadline for notifying existing insurers.
• B) The 15-day figure is the appointment filing deadline and has nothing to do with replacement notice; the notice duty is keyed to five business days.
• C) The notification duty is mandatory under the replacement regulation and does not depend on any request from the applicant.

Memory hook

Replacement notice: five business days to tell the old insurer.