For how long must the existing company notify the policyholder after a replacement notification?

The correct duration for an existing company to notify the policyholder after a replacement notification is 20 days. This timeframe is established in Indiana law to ensure that policyholders are adequately informed about changes to their insurance coverage. When a replacement occurs, the original insurer has an obligation to alert the policyholder within this specified period to facilitate a clear understanding of their new policy and to address any potential gaps in coverage or benefits that might arise as a result of the switch.

This requirement promotes transparency and protects consumers by giving them sufficient time to assess their options and make informed decisions about their insurance needs. Understanding this timeframe is crucial for agents and policyholders alike, as it underscores the importance of clear communication throughout the insurance replacement process.