State RegulationsNY specificDifficulty 2/5
A licensed New York agent is replacing a client's existing individual life insurance policy. Under Reg 60, when must the agent submit the 'Important Notice Regarding Replacement' to the applicant for signature?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Reg 60 (11 NYCRR Part 51), when a replacement is involved the agent must obtain the applicant's signed replacement statement and provide the 'Important Notice Regarding Replacement' no later than the time the application is taken, so the applicant learns the consequences of replacement before committing. The agent must also notify all insurers involved; the new insurer then has its own duty to forward the disclosure to the replaced insurer after delivery.
Why the other options are wrong
- B) Ten days after delivery is the NEW insurer's deadline for mailing the disclosure copy to the replaced insurer under Reg 60, not the agent's deadline at the application stage.
- C) Twenty days is the period the REPLACED insurer has to supply policy information on request under Reg 60; it is not a deadline for obtaining the applicant's signature.
- D) Replacement disclosures do not await the Superintendent's approval; Reg 60 requires them at the application stage, and no separate approval process applies.
Memory hook
Reg 60: the Important Notice travels WITH the application, never after.