State RegulationsNC specificDifficulty 2/5
A North Carolina insurer receives a completed application indicating that an existing life policy will be replaced. Under 11 NCAC 12 .0612(a)(2), within what period must the replacing insurer notify each affected existing insurer?
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Answer & full 3-part explanation (select an option above, or peek)
Why A 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 of otherwise identifying the replacement. It must also mail the illustration or policy summary to an existing insurer within 5 business days of that insurer's request. Early notice lets the existing insurer preserve the applicant's coverage before it lapses.
Why the other options are wrong
- B) Ten days overstates the notification deadline, which is five business days.
- C) Thirty days is the applicant's replacement return right, a different duty under a different subsection.
- D) Fifteen days is the appointment-filing deadline under G.S. 58-33-40(b), unrelated to replacement.
Memory hook
Five business days — tell the old insurer fast.