L&HNJmedium
How does N.J.A.C. 11:4-2 address replacement transactions sold by a direct-response insurer where no producer interacts with the applicant?
ADirect-response replacements are wholly exempt from the rule and no disclosure or notice of any kind is required to be given to the applicant
The insurer must itself provide the replacement disclosure and obtain a signed Notice Regarding Replacement from the applicant
COnly the existing insurer's notice obligations apply; the replacing insurer is excused
DThe applicant must hire an independent producer to deliver the notice
Why this is the answer
N.J.A.C. 11:4-2 extends the replacement framework to direct-response transactions by requiring the insurer itself to provide the replacement disclosure and obtain a signed Notice Regarding Replacement from the applicant when no producer is involved.
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