What must an agent do before aiding in the replacement of a life insurance policy?

Before an agent can assist in the replacement of a life insurance policy, it is essential for them to provide a written notice regarding the replacement. This is critical because the process of replacing an existing life insurance policy could have significant implications for the policyholder. The written notice serves to inform the client about the potential risks, benefits, and consequences associated with replacing their current policy.

Providing this notice helps ensure transparency and enables the client to make an informed decision. It’s a safeguard designed to protect consumers, ensuring that they are fully aware of what they might be giving up by replacing their existing insurance.

The other options do not fulfill this requirement in the same way. While informing the client of penalties or listing all available policies can be considered part of good practice, they do not meet the specific regulatory requirement of providing a written notice regarding the replacement, which is a mandated step in the replacement process. Submitting a form to the regulatory board may relate to regulatory compliance, but it doesn’t address the immediate need for client awareness and understanding about the replacement itself.