State RegulationsIL specificDifficulty 1/5
In the language of Illinois' replacement rule, who is the "replacing insurer"?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
50 Ill. Adm. Code 917 assigns the term replacing insurer to the company issuing the new contract that triggers the replacement. That identification matters because the rule's affirmative duties — notifying the existing insurer of the proposed replacement, furnishing the applicant's replacement notice or proposal, and keeping records — fall on the replacing insurer precisely because it is the party taking over the business.
Why the other options are wrong
- A) The insurer that issued the policy already owned is the existing insurer, the mirror-image term.
- B) Market share has no bearing on the definition; the roles are transaction-specific.
- C) First contact is irrelevant; the role attaches to the company that actually issues the new policy.
Memory hook
New paper, new name: the replacing insurer is the one writing the new policy.