Replacements

Obligations

All replacements must be carried out in accordance with the applicable provincial regulations. You must not, directly or indirectly, induce or attempt to induce a policyowner to replace a policy. If you recommend a client replace an existing life insurance policy, you must ensure the replacement serves the best interest of the client.

To satisfy regulatory replacement requirements, you must review the Life Insurance Replacement Declaration (LIRD) – or in Quebec, the Notice of Replacement of Insurance of Persons Contract – with the client and provide them with a written explanation of the advantages and disadvantages of replacing the policy.

Obtain additional information and prescribed forms from the provincial insurance regulator in the province(s) in which you are licensed to conduct business.

Life Insurance Replacement Declaration (LIRD) must be provided to client along with:

Life Insurance Replacement (Quebec)

Replacement Disclosure – a Guide to Preparing the Written Explanation Required (August 2014)