What document must be provided to a policy owner or applicant during policy replacement?

The required document that must be provided to a policy owner or applicant during policy replacement is the Notice regarding replacement. This document is essential because it ensures that the policyholder is fully informed about the implications of replacing their existing insurance policy with a new one.

The Notice regarding replacement typically outlines the potential consequences, including how the new policy might differ from the existing one, any lapse in coverage that might occur, and essential details about the features and benefits of both the new and the old policies. It serves as a safeguard to promote transparency and help consumers make an informed decision about whether to proceed with the replacement or maintain their current policy.

The other options, while relevant to the overall process of providing information to clients about insurance policies, do not fulfill the specific legal requirement mandated for policy replacement. A policy summary provides an overview of the new policy’s features but does not specifically address the legalities of replacement. A disclosure statement is typically broader and may cover various aspects of the policy, but it does not focus solely on replacement. A benefit illustration provides a visual representation of the policy benefits, but it does not inform the policyholder of the critical aspects involved in replacing an existing policy.