In replacing a life insurance policy, who is typically responsible for providing the notice of replacement to be signed by the applicant?

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

Answer: (C)

The main idea here is that when a life policy is being replaced, there must be a formal notice to inform the applicant about the replacement and its possible effects. The person who communicates this notice and makes sure the applicant signs it is the producer (the agent) involved in the replacement. This duty fits with the producer’s role as the facilitator of the transaction and the one responsible for providing disclosures to the applicant. The insurer may supply the notice or be involved in compliance, but the act of delivering the notice to the applicant and obtaining the signature is the producer’s responsibility. The beneficiary isn’t the party who provides this notice, and while the applicant signs to acknowledge receipt, it’s the producer who ensures that signature and the accompanying disclosures are completed.