State RegulationsGA specificDifficulty 2/5
A producer in Columbus, Georgia takes an application that will replace the applicant's existing life policy. Under Reg. 120-2-24-.05, what must the producer do with the signed statement disclosing the replacement?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg. 120-2-24-.05, the producer must obtain the applicant's signed replacement statement and submit it to the replacing insurer with the application. The replacing insurer then uses the statement to perform its own duties under Reg. 120-2-24-.06, including notifying the existing insurer. Filing the statement only in the producer's files defeats the disclosure chain the regulation requires.
Why the other options are wrong
- A) Personal retention is not enough; the signed statement must reach the replacing insurer with the application.
- B) The producer does not mail the statement to the existing insurer; that insurer is notified by the replacing insurer.
- C) No attorney review is part of the replacement procedure; the statement goes to the replacing insurer.
Memory hook
Signed statement travels WITH the application to the NEW insurer.