Final answer:
In replacement life insurance, the insurance agent or company is responsible for determining if the applicant has an existing policy and will usually ask specific questions to gather this information during the application process.
Step-by-step explanation:
In the case of replacement life insurance, the responsibility to determine if the applicant has an existing policy lies with the insurance agent or company. It is common practice for the insurance agent or company to ask the applicant specific questions about their current life insurance coverage during the application process. Additionally, the insurance agent or company may also verify the applicant's existing policy by requesting documents or contacting the previous life insurance provider.