Life · Chapter 21 · Replacement
Duties of the Replacing Agent
Definition
When replacing a life policy or annuity, the agent must: (1) present a Notice Regarding Replacement signed by both the applicant and the agent, leaving a copy with the applicant at the time of application; (2) obtain a list of all existing life and annuity policies to be replaced, including policy numbers and the names of all companies being replaced; (3) leave the applicant the original or a copy of all written or printed communications used in the presentation; and (4) disclose the possible tax consequences of replacing or exchanging an existing annuity or life policy.
In plain English
Signed notice, full inventory of what's being replaced, leave your sales materials behind, and warn about taxes.
Exam tip
⚠️ Both signatures — applicant AND agent — go on the Notice Regarding Replacement, and the copy stays with the applicant at application time, not delivery.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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