California Insurance Code & EthicsQuestion 54 of 315
Under California replacement regulations, when an applicant indicates a replacement is involved, the agent must:
a.Notify the Commissioner directly within 15 days
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 is delivered before notifying the existing insurer
d.Provide only a verbal disclosure of differences
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 §2534.4Practice all 315 questions free — no signup required.
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Last reviewed: · editorial process
Sen Lin, PrepPass Founder · 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)