During a replacement transaction in North Carolina, an existing insurer asks the replacing insurer for a copy of the illustration or policy summary used in the sale. Under 11 NCAC 12 .0612(a)(2), within what period must the replacing insurer mail it?

Why D is correct

Under 11 NCAC 12 .0612(a)(2), the replacing insurer's information-sharing duty runs in both directions: it must notify each affected existing insurer within 5 business days of receiving a completed application indicating replacement, and it must mail the illustration or policy summary to an existing insurer within 5 business days of that insurer's request. The request-triggered copy lets the existing insurer compare the proposed coverage and protect its policyholder.

Why the other options are wrong

• A) Ten calendar days overstates the window; the rule allows five business days from the request.
• B) Thirty days belongs to the applicant's right to return a replacement policy, not to the existing insurer's copy request.
• C) Premium payment never starts this clock; the five-business-day period runs from the existing insurer's request.

Memory hook

Asked for the paperwork? Five business days to send it.

Why D is correct

Under 11 NCAC 12 .0612(a)(2), the replacing insurer must notify each affected existing insurer within 5 business days of receiving a completed application indicating replacement, or when the replacement is otherwise identified. The replacing insurer must also mail the illustration or policy summary within 5 business days of an existing insurer's request.

Why the other options are wrong

• A) 30 business days is far too long; the rule fixes 5 business days for existing-insurer notice.
• B) 15 days is the copy-to-producer termination-notice period under G.S. 58-33-56 and does not govern replacement notices.
• C) 10 business days matches the standard free-look period, not the replacement notice deadline.

Memory hook

Replacement notices move fast: 5 business days to warn the old insurer.