Replacement Policies and Guidelines
This guide is intended to help you, the independent agent, comply with replacement regulations in general, and to assist you in making appropriate replacement recommendations. As you know, any replacement recommendation should be in the client’s best interest.
A majority of states have adopted the NAIC Life Insurance and Annuities Replacement Model Regulation (“Model Regulation”). Our guidelines are derived, to a large extent, from the Model Regulation. It is also vital that you understand what is considered a replacement transaction and what the applicable requirements are in all states where you do business.