During the replacement of life insurance, what must the replacing insurer obtain?

When a life insurance policy is being replaced, the replacing insurer is required to obtain a list of all life insurance policies that will be replaced. This is essential as it ensures that the insurer is aware of the existing coverage that the policyholder holds before issuing new insurance. Understanding the details of the policies that are being replaced helps in assessing the need for the new policy and determining any potential impacts on the policyholder's coverage and benefits.

Moreover, this process is part of the regulatory framework designed to protect consumers by ensuring they fully understand the implications of replacing an existing policy. It allows the insurer to inform the policyholder about the advantages and disadvantages of making such a change, ensuring that the policyholder makes an informed decision regarding their coverage.

The importance of obtaining this information lies in promoting transparency and preventing policyholders from being underserved or misled during the replacement process.