Multiple Insurance Policies / Replacement Forms

[iamnewtothis]

This question is probably a piece of cake but I cannot find it through google searching or searching the forums.

So a client of mine has a whole life policy with AmAm currently. He wants more coverage and I plan to write him under RNA. He wants to keep his other policy. Do I write a replacement form? I'm pretty sure I would mark on the RNA app that I am aware that this guy has another policy, but it tells me to do a replacement if I mark yes. But the guy doesn't want to get it replaced so I am unsure of how to handle this. Let me know about this or any other suggested course of action to take for this situation, it would be greatly appreciated! Thank you !!!

 

[Jerard]

This question is probably a piece of cake but I cannot find it through google searching or searching the forums.

So a client of mine has a whole life policy with AmAm currently. He wants more coverage and I plan to write him under RNA. He wants to keep his other policy. Do I write a replacement form? I'm pretty sure I would mark on the RNA app that I am aware that this guy has another policy, but it tells me to do a replacement if I mark yes. But the guy doesn't want to get it replaced so I am unsure of how to handle this. Let me know about this or any other suggested course of action to take for this situation, it would be greatly appreciated! Thank you !!!

On the first section ("Existing or Applied for Insurance") check "YES" and list the existing policy information.

On the second section ("Replacement") check "NO".

To be on the safe side (if it was me) I would add a note saying "client is keeping existing coverage".

No replacement form is needed since you're not replacing anything.

 

[jdeasy]

On the first section ("Existing or Applied for Insurance") check "YES" and list the existing policy information.

On the second section ("Replacement") check "NO".

To be on the safe side (if it was me) I would add a note saying "client is keeping existing coverage".

No replacement form is needed since you're not replacing anything.

Not so fast there. In NAIC states you must do a replacement form if the person has current life insurance even if not replacing.

Find out the rules for the state where you are writing the application. In Ky I have to do a replacement form anytime someone has coverage. If not replacing I write "no replacement involved" on the replacement form, have it signed and send it in. In In and Tn I don't have to do that.

Check with your state DOI or with the carrier.

 

[Jerard]

Not so fast there. In NAIC states you must do a replacement form if the person has current life insurance even if not replacing.

Find out the rules for the state where you are writing the application. In Ky I have to do a replacement form anytime someone has coverage. If not replacing I write "no replacement involved" on the replacement form, have it signed and send it in. In In and Tn I don't have to do that.

Check with your state DOI or with the carrier.

Yup....good idea. I was going by the Florida app.

 

[nfl72]

I would have missed that question. Over the past 4 years I have on numerous occassions marked that they did have existing insurance but because I wasn't replacing anything never did the replacement forms. I have never had Foresters or anybody for that matter ask for a replacement form unless I was infact replacing a policy.

Who needs the book of knowledge when we have jdeasy!!!

 

[Norwayguy]

Not so fast there. In NAIC states you must do a replacement form if the person has current life insurance even if not replacing.

Find out the rules for the state where you are writing the application. In Ky I have to do a replacement form anytime someone has coverage. If not replacing I write "no replacement involved" on the replacement form, have it signed and send it in. In In and Tn I don't have to do that.

Check with your state DOI or with the carrier.

Jdeasy is right about NAIC states almost every app I do has a replacement form done.

 

[360]

NAIC states where form is required even if existing coverage is not being replaced: AK, AL, AR, AZ, CO, HI, IA, KY, LA, MD, ME, MS, MT, NE, NH, NJ, NM, NC, OH, OR, RI, SC. TX, UT, VA, VT, WI, WV

 

[Jerard]

NAIC states where form is required even if existing coverage is not being replaced: AK, AL, AR, AZ, CO, HI, IA, KY, LA, MD, ME, MS, MT, NE, NH, NJ, NM, NC, OH, OR, RI, SC. TX, UT, VA, VT, WI, WV

Thanks, thats good to know....I was wondering about Florida but I didn't want to look stupid by asking.

Uh ohh.....