Duties of the Replacing Insurer

When a replacement occurs, the replacing insurance company must: (1) require a list of the applicant's life/annuity contracts to be replaced and a copy of the replacement notice given to the applicant; (2) send each existing insurer a written communication advising of the proposed replacement immediately upon receipt of the application at its home or regional office (F.A.C. 69O-151.007); (3) submit a copy of the replacement notice with the application; (4) include a policy summary or ledger statement containing policy data on the proposed policy or annuity; and (5) provide a written comparison and summary statement on the new policy or annuity at the owner's request.

The new company must paper the trail — and tip off the old company so it can fight to keep the client.