Which of the following is FALSE regarding the life insurance replacement rules?

Which of the following is FALSE regarding the life insurance replacement rules?


A. Replacement policies must have a 30-day free look

B. The existing insurer must be notified of the proposed replacement transaction within 5 business days of receipt of the application

C. The replacing insurer must verify that all required forms are completed and received with the application

D. Replacement forms must be kept on file for 7 years


Answer: D. Replacement forms must be kept on file for 7 years

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