State RegulationsFL specificDifficulty 2/5
A Florida agent takes an application that will replace an existing life insurance policy. What must the agent do?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under F.A.C. 69B-151.007, the agent in a replacement transaction must present the required notice regarding replacement, obtain the applicant's signature on the statement identifying the existing policies, sign the statement, and submit it with the application to the replacing insurer. Advising an applicant to drop existing coverage before the new policy is in force would defeat the protections the rule provides and is itself a prohibited practice.
Why the other options are wrong
- A) Agents carry the front-line duties of presenting the notice and obtaining signatures; insurers have separate downstream duties.
- B) The signed statement reaches the existing insurer promptly through the replacement process, not 10 days after the policy is issued.
- D) Advising the applicant to cancel existing coverage first can leave the client uninsured and is prohibited.
Memory hook
Agent's replacement job: notice, signature, submission.