New Jersey Life Insurance Exam Practice Question
Which of the following MUST an agent do when replacing a Life Insurance Policy?
Correct Answer: C
Rationale: When replacing a life insurance policy, it is essential for the agent to submit to the replacing insurer a list of all life insurance policies or annuity contracts proposed to be replaced. This ensures transparency and allows the new insurer to assess the applicant's insurance history accurately.
Option A is incorrect as obtaining justification from the applicant is not a mandatory requirement for replacement. Option B is misleading; the agent must notify both the insurer being replaced and the replacing insurer to ensure compliance with regulations. Option D is wrong because the applicant must receive a copy of the Disclosure Statement to understand the replacement implications fully.
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