State RegulationsGA specificDifficulty 1/5
Under Georgia's life insurance replacement regulation, which party is responsible for notifying each existing insurer that a proposed policy will replace coverage it has issued?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Reg. 120-2-24-.06 and .07, the replacing insurer must notify each existing insurer that a replacement is proposed and must retain records of the replacement transaction. The producer's duties (under Reg. 120-2-24-.05) center on disclosure to the applicant; the notice to the existing insurer is the replacing insurer's obligation, allowing the old carrier to conserve the policy if appropriate.
Why the other options are wrong
- A) The producer discloses to the applicant under Reg. 120-2-24-.05, but the duty to notify the existing insurer belongs to the replacing insurer.
- B) The Insurance Commissioner has no notice role in a private replacement transaction; the thirty-day figure does not apply here.
- D) The existing insurer receives the notice; it does not initiate the replacement process or request its own notification.
Memory hook
The NEW insurer tattles to the OLD insurer — that's the replacing insurer's job.