In a replacement, whose responsibility is to ensure the current policy is not canceled before the new policy is issued?

In a replacement, whose responsibility is to ensure the current policy is not canceled before the new policy is issued?

• A. The insured
• B. The insurer
• C. The agent
• D. The underwriter

Answer: (C)

In a policy replacement, the person replacing the policy must safeguard continuous protection for the insured. The agent has the responsibility to verify that a new policy is issued or in force before the current policy is canceled, so there’s no gap in coverage. The agent coordinates the replacement, explains the implications to the insured, and ensures the proper disclosures and forms are completed. The insurer issues policies and the underwriter assesses risk, but the duty to prevent a lapse during replacement sits with the agent.

In a policy replacement, the person replacing the policy must safeguard continuous protection for the insured. The agent has the responsibility to verify that a new policy is issued or in force before the current policy is canceled, so there’s no gap in coverage. The agent coordinates the replacement, explains the implications to the insured, and ensures the proper disclosures and forms are completed. The insurer issues policies and the underwriter assesses risk, but the duty to prevent a lapse during replacement sits with the agent.