Question

Which form must be provided to applicants intending to replace a life insurance policy?

A) Replacement Notice

B) Policy Summary

C) Illustration Form

D) Application Form

Answer 1

Applicants intending to replace a life insurance policy must be provided with a Replacement Notice, which details the implications and potential costs of the change.

Step-by-step explanation:

When an individual intends to replace a life insurance policy, the form that must be provided to the applicant is the Replacement Notice. This document is crucial as it informs the potential policyholder about the implications of replacing an existing life insurance policy with a new one. It typically outlines the potential benefits and disadvantages of the replacement, including any costs associated with the switch, and compares the existing policy's features with those of the proposed new policy.