A replacing insurer in North Carolina receives a completed application that indicates replacement of an existing life policy. When must it notify each affected existing insurer?

Why C 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 rule also requires the replacing insurer to mail a copy of the illustration or policy summary within 5 business days of an existing insurer's request. Early notice lets the existing insurer contact its policyholder and preserve the old coverage if the replacement is unsuitable.

Why the other options are wrong

• A) The trigger is receipt of the completed application, not policy approval, and the period is 5 business days, not 10.
• B) Fifteen days is the appointment-filing deadline concept, and delivery of the new policy is not the trigger for notifying existing insurers.
• D) The 30-day figure relates to other deadlines; the existing insurer's request starts a 5-business-day clock for sending the illustration or summary, not the notice duty.

Memory hook

Five business days to warn the old insurer once the application shows a swap.