State RegulationsCO specificDifficulty 3/5
A producer in Boulder completes a Notice Regarding Replacement for an applicant. Under Colorado Insurance Regulation 4-1-4, who must sign the notice and how are copies distributed?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Colorado Insurance Regulation 4-1-4 requires the Notice Regarding Replacement to be signed by both the applicant and the producer. A copy must be left with the applicant, and copies must be provided to the replacing insurer, which allows the insurer to verify that the disadvantages of replacement were properly disclosed before the sale was completed.
Why the other options are wrong
- A) The replacing insurer receives copies but does not sign the notice; the required signatures are the applicant's and the producer's.
- B) No county filing exists in the regulation, and the applicant's signature alone is incomplete because the producer must also sign.
- C) A producer-only signature kept in private files defeats the regulation's purpose of leaving the applicant informed and the insurer notified.
Memory hook
Two signatures, one copy for the client, copies to the insurer.