State RegulationsNC specificDifficulty 1/5
An existing insurer sends a verification letter to a North Carolina replacing insurer in a replacement transaction. Under 11 NCAC 12 .0612(d), how long must the replacing insurer keep the verification letter?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 11 NCAC 12 .0612(d), a replacing insurer must retain verification letters for 5 years after the policy terminates. This runs parallel to the rule's core record duty in .0612(a)(3), which requires Notices Regarding Replacement to be producible for at least 5 years or until the next regular examination by the domicile regulator, whichever is later, indexed by producer.
Why the other options are wrong
- A) Two years understates the required period; verification letters are kept five years after termination.
- C) Five business days is the existing-insurer notification and copy-request deadline in .0612(a)(2), not a retention period.
- D) Retention is measured from policy termination, not from the first anniversary.
Memory hook
Verification letters ride five years past termination.