Final answer:
An existing insurer's duties include informing the policyowner about their policy rights and any changes to the face amount, and retaining replacement notifications for a set period. However, sending a replacement notice to the policyowner is not the existing insurer's responsibility.
Step-by-step explanation:
The duties of an existing insurer typically include a variety of responsibilities to ensure the policyholder is well informed about their policy and any changes that may affect it. However, among the options provided, sending a replacement notice to the policyowner is not typically a duty of an existing insurer. This task is more closely associated with the new insurer or agent who is responsible for ensuring that the policyowner is aware of the replacement of an existing policy.
The existing insurer does have the duty to inform the policyowner about their policy rights and any changes that could affect the face amount of the insurance policy. They are also obligated to retain all replacement notifications for a specified period, such as 5 years, to comply with legal and regulatory requirements.