CA Ins Code Section 10509.4


Each agent who accepts an application shall submit to the insurer with which an application for life insurance or annuity is presented, or as part of each application, both of the following:


A statement signed by the applicant as to whether replacement of existing life insurance or annuity is involved in the transaction.


A signed statement as to whether or not the agent knows replacement is or may be involved in the transaction.


Where a replacement is involved, the agent shall do all of the following:


Present to the applicant, not later than at the time of taking the application, a “Notice Regarding Replacement of Life Insurance” in the form as described in subdivision (d). The notice shall be signed by both the applicant and the agent and left with the applicant. Obtain with or as part of each application a list of all existing life insurance or annuities to be replaced and properly identified by name of insurer, the insured and contract number. If a contract number has not been assigned by the existing insurer, alternative identification, such as an application or receipt number, shall be listed.


Leave with the applicant the original or a copy of all printed communications used for presentation to the applicant.


Submit to the replacing insurer with the application a copy of the replacement notice.


Every agent who uses written or printed communications in conservation shall leave with the applicant the originals of any materials used.


Each agent or broker shall present to an applicant the following notice: NOTICE REGARDING REPLACEMENT Are you thinking about buying a new life insurance policy or annuity and discontinuing or changing an existing one? If you are, your decision could be a good one—or a mistake. You will not know for sure unless you make a careful comparison of your existing benefits and the proposed benefits. Make sure you understand the facts. You should ask the company or agent that sold you your existing policy to give you information about it. Hear both sides before you decide. This way you can be sure you are making a decision that is in your best interest. We are required by law to notify your existing company that you may be replacing their policy. (applicant) (agent) (date)
Last Updated

Aug. 19, 2023

§ 10509.4’s source at ca​.gov