L&HCaliforniamedium
After a California applicant signs the Notice Regarding Replacement for a new life policy, within how many days must the replacing insurer notify the existing insurer of the pending replacement?
3 working days from the date the application is received at the replacing insurer's home office
B3 calendar days measured from the date the replacement policy is issued by the home office
C10 calendar days measured from the date the applicant signed and dated the new application
D30 calendar days measured from the date the replacement policy is actually delivered to the applicant at home
Why this is the answer
California law sets a tight clock on replacement notification so the existing insurer has a chance to conserve the policy. The clock starts when the completed application reaches the replacing insurer's home office, not when the agent takes the application. 'Working days' (a) excludes weekends and holidays — choice (b)'s 'calendar days' is wrong on both the unit and the trigger event. 10 days (c) and 30 days (d) are not the statutory window for this step (30 days is the conservation/free-look window once the replacement policy is delivered under § 10509.6).
Studying for the California Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.