Question

During replacement of life insurance, a replacing insurer must do which of the following?

A. Designate a new producer for a replaced policy
B. Send a copy of the Notice Regarding Replacement to the Department of Insurance
C. Obtain a list of all life insurance policies that will be replaced
D. Guarantee a replacement for each existing policys

Answer 1

During the replacement of a life insurance policy, a replacing insurer must designate a new producer, send a copy of the Notice Regarding Replacement to the Department of Insurance, and obtain a list of all life insurance policies that will be replaced.

Step-by-step explanation:

During the replacement of a life insurance policy, a replacing insurer must:

1. Designate a new producer for a replaced policy: The replacing insurer must appoint a new insurance agent or producer to handle the replaced policy.
2. Send a copy of the Notice Regarding Replacement to the Department of Insurance: The replacing insurer is required to provide a copy of the Notice Regarding Replacement to the Department of Insurance. This notice informs the department about the replacement of the life insurance policy.
3. Obtain a list of all life insurance policies that will be replaced: The replacing insurer needs to gather a comprehensive list of all the life insurance policies that will be replaced. This ensures that the replacement process is properly documented and regulated.