Under TIC 1114.051-.057, which of the following duties belongs to the replacing insurance company rather than to the agent?
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 A is correct
Under TIC 1114.051-.057, once a replacement application reaches the replacing insurer, the company — not the agent — must send written notice of the proposed replacement to each existing insurer whose coverage is being displaced, and must give the policyowner a written notice of the replacement together with notice of the right to return the new policy and receive a refund of the premium paid. This division of labor matters on the exam and in practice: the company's notice lets the existing insurer attempt to conserve its business, and the delivery notice reminds the buyer, after the policy is in hand, of the escape hatch. The point-of-sale comparison documents remain the agent's job.
Why the other options are wrong
- B) Delivering the buyer's guide and leaving it with the applicant is expressly the agent's duty at the point of sale under TIC 1114.051-.057.
- C) The chapter imposes disclosure and notice duties, not a duty to underwrite the wisdom of the sale or to refuse to issue a lawful replacement.
- D) The applicant signs the applicant's statement and the agent signs the agent's statement; neither signature is the replacing insurer's duty.
Memory hook
Company notifies the old insurer and offers the refund; agent discloses at the sale.