For how long must a replacing insurer retain records of a replacement transaction under Florida's replacement rules?

Why C is correct

Under F.A.C. 69B-151.007, the replacing insurer must keep all records relating to a replacement transaction for at least 3 years, or until the next routine examination of the place of business, whichever is later. The records include the signed replacement statements, the notice, and the sales proposals received with the application.

Why the other options are wrong

• A) Policy maturity can occur decades later; the retention rule is measured in years and examinations, not contract maturity.
• B) The insured's death is not the retention trigger under the replacement rules.
• D) Processing the application is only the beginning; the retention obligation extends well beyond it.

Memory hook

Replacement records: 3 years or next exam, whichever is later.

Why A is correct

Under F.A.C. 69B-151.007, the replacing insurer must obtain the applicant-and-agent dual-signed statement with the application, receive Form OIR-B2-312 and all sales proposals, and keep all replacement records for at least 3 years or until the next routine examination of the place of business, whichever is later. The 5-working-day and 10-day figures in this area are response deadlines for the comparative information forms, not record-retention periods.

Why the other options are wrong

• B) 5 working days is the deadline for mailing the Comparative Information Form, not the retention period.
• C) 10 days is the existing insurer's deadline to provide the B2-313 information, not the retention period.
• D) Records must be kept for years, not merely until the free-look period runs out.

Memory hook

Replacement paper lives 3 years - or to the next exam.