The outline says a producer is responsible for accurately documenting a dwelling's replacement cost at the time of original application. Learn that for the exam. Under the current regulation, 10 CCR §2695.183(m), a licensee is not required to estimate replacement cost, and the documentation rules apply once an estimate is communicated, verbally or in writing.

What the file must show (10 CCR §2695.182(a)): - who prepared the estimate, that person's status and contact details; - the source or method used; - copies of documents used. Recent sale prices of similar homes are not on the list; market value is a different number from the cost to rebuild.

Keeping records: when a policy is issued, the estimate and the information used to create it must be kept for the entire policy term or the duration of coverage, whichever ends later, and for five years after that. The five years run from the end of coverage, not from the application.

Giving a copy: a copy is normally due when the estimate is communicated. If the estimate is communicated to an insured by telephone, the copy must be mailed no later than three business days after the conversation. The insured does not have to ask for it.