In a policy replacement, who signs the notice of replacement?

• A. Applicant
• B. Producer
• C. Underwriter
• D. Beneficiary

Answer: (A)

In a replacement situation, the notice of replacement is used to make sure the applicant/app owner understands what they’re getting into with the new policy and how it compares to the policy being replaced. The person who signs this notice is the applicant, to confirm they’ve received the disclosure and acknowledge their understanding of its contents. This signature serves as proof that they were informed about the implications of the replacement, such as any changes in benefits, costs, or premium obligations. The producer may also sign to attest that they provided the notice, but the crucial signer for the acknowledgment is the applicant. The underwriter and beneficiary aren’t the signers of this notice because their roles aren’t about acknowledging disclosure of the replacement.