State RegulationsGA specificDifficulty 2/5
Which of the following is a Georgia producer required to do when effecting the replacement of a client's existing life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Reg. 120-2-24-.05, the Georgia producer effecting a replacement must provide a replacement notice to the applicant, obtain a list of all existing life insurance policies to be replaced, obtain the applicant's signed statement of replacement, leave the notice with the applicant, and submit copies to the replacing insurer. These disclosure duties ensure the applicant can compare the old and new coverage before surrendering anything. No duty to forward the old policy to the Commissioner, guarantee outcomes, or seek the existing insurer's approval exists.
Why the other options are wrong
- A) The producer's duties run to the applicant and the replacing insurer; the original policy is not sent to the Insurance Commissioner.
- C) A producer may never guarantee that a new policy will outperform the old one; Reg. 120-2-24 requires comparison information, not promises.
- D) The application goes to the replacing insurer; the existing insurer is notified by the replacing insurer, not asked to approve the sale.
Memory hook
Producer's replacement kit: notice, list, signature — leave a copy with the client.