Final answer:
The type of insurance plans that require a replacement disclosure notice when a policy is replaced are life insurance plans. This notice is critical for informing the consumer about the potential costs and benefits associated with the new policy.
Step-by-step explanation:
The question pertains to the insurance industry and the practice of policy replacement. In the context of various types of insurance such as health, car, home, and life insurance, policy replacement is particularly significant in one area. The type of plans that require a replacement disclosure notice to be given to the applicant in the event of policy replacement are life insurance plans. The replacement disclosure notice is essential as it provides the policy owner with information about the costs and benefits of the new policy compared to the existing one. This practice helps ensure that consumers make informed decisions about life insurance policy replacements.