State RegulationsNC specificDifficulty 1/5
In a North Carolina life insurance replacement, which duty falls on the producer under 11 NCAC 12 .0605?
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Answer & full 3-part explanation (select an option above, or peek)
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.