State RegulationsTX specificDifficulty 3/5
With respect to the replacement notice used in a Texas life insurance replacement, what is the agent's own responsibility?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1114.051-.057, the replacement notice is signed by both the applicant and the agent, a copy is left with the applicant, and the signed notice along with the applicant's statement and any sales proposal used is submitted to the replacing insurer with the application. Practically, the agent's signature is the department's proof of who disclosed what, so a Texas agent should never sign a notice the applicant has not actually received.
Why the other options are wrong
- B) is wrong because the agent is a required signatory, not a mere messenger for the applicant's signature.
- C) is wrong because notarization of the replacement notice is not required.
- D) is wrong because copies must go to both the applicant and the replacing insurer; the agency file cannot be the only place a copy exists.
Memory hook
Both sign: applicant and agent, copies to both.