Advisers accepting life insurance or annuity applications must submit to the insurer a statement signed by the applicant if replacement of existing life insurance or an annuity is (or may be) involved in the transaction.
Where a replacement is involved, the agent must do all of the
following:
- When taking the application, present the applicant a "Notice Regarding Replacement of Life Insurance."
- The notice must be signed by the applicant and agent, and left with the applicant.
- Obtain a list of all existing life insurance or annuities to be replaced and properly identified by name of insurer, the insured, and contract number.
- If a contract number has not been assigned by the existing insurer, alternative identification, an application or receipt number must be listed.
- Leave with the applicant the original or a copy of all printed presentation communications.
- Submit the application and a copy of the replacement notice to the replacing insurer.
