State RegulationsOH specificDifficulty 1/5
An Ohio replacing insurer receives a completed life insurance application that involves replacement of an existing policy. Under OAC 3901-6-05, what must the replacing insurer do with respect to the existing insurer?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
OAC 3901-6-05 requires the replacing insurer to notify each existing insurer within 5 business days of receiving the completed replacement application, and to mail the illustration or policy summary to the existing insurer within 5 business days of the existing insurer's request. The prompt notice lets the existing insurer reach out to its policyowner with comparison information before the replacement is finalized.
Why the other options are wrong
- A) 30 days is the replacement free-look period, not the notice deadline; notice is due within 5 business days of receiving the completed application.
- C) 15 days is not the replacement notice period, and the duty is not tied to the end of the free-look period.
- D) The notice duty is automatic upon receiving the completed replacement application; it does not depend on a request from the existing insurer.
Memory hook
Five business days to warn the old insurer.