California Insurance Code & EthicsQuestion 54 of 315
Under California replacement regulations, when an applicant indicates a replacement is involved, the agent must:
a.Provide only a verbal disclosure of differences
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.Notify the Commissioner directly within 15 days
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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