State RegulationsNY specificDifficulty 2/5
A New York agent takes an application that will replace the applicant's existing life policy with a new one from a different insurer. Under Reg 60, what must the agent do?
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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, agent duties in Part 51.5), when a sale involves replacement, the agent must submit the required replacement disclosure — the 'Important Notice Regarding Replacement' — no later than the application, obtain the applicant's signed statement identifying the policies involved, and notify all insurers concerned. These duties exist so the existing insurer can alert the applicant to any loss of benefits from replacing coverage.
Why the other options are wrong
- B) Waiting until delivery is too late — the disclosure and signed statement are due at the time of application.
- C) The Superintendent does not pre-approve individual replacement applications; the Reg 60 procedure itself governs.
- D) Notice is mandatory, not something triggered by the applicant's request.
Memory hook
Reg 60 at application: notice out, statement signed, insurers told.