California Insurance Code & EthicsQuestion 54 of 716
Under California replacement regulations, when an applicant indicates a replacement is involved, the agent must:
a.File the replacement notice directly with the Insurance Commissioner's office instead of with either insurer involved
b.Provide a written notice regarding replacement and submit it to both the new insurer and the existing insurer
c.Wait until the new policy has actually been delivered before notifying the existing insurer of the replacement in writing
d.Give the applicant nothing more than a verbal explanation of the differences between the old and the new policies
Explanation
California's replacement regulations (10 CCR §§2534+) require the agent to provide a Notice Regarding Replacement signed by the applicant and submit copies to both insurers so the existing insurer can preserve the applicant's right to conserve the policy.
Law Reference: 10 CCR §2534.4This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)