When replacing individual life insurance, to whom must the Notice Regarding Replacement of Life Insurance be provided?

The Notice Regarding Replacement of Life Insurance is an important document meant to inform individuals about the implications of replacing their existing life insurance policies. In New Jersey, this notice must be provided to the applicant only, which typically refers to the person seeking to obtain a new life insurance policy rather than the person currently insured.

The purpose of this notice is to ensure that the individual considering the replacement is fully aware of the consequences, potential loss of benefits, and other crucial factors associated with transitioning from one policy to another. Understanding the implications of such a decision is critical, as it can significantly impact the applicant's financial future and coverage.

Providing the notice solely to the applicant ensures that the individual making the decision is fully informed. The insurer is not a direct party to this particular disclosure requirement because the focus is on the applicant's awareness and understanding of the policy replacement process. Consequently, the duty of delivering the notice falls squarely on those involved in initiating the new policy, not on the insurer holding the old policy.