Who is responsible for providing an insured with proper disclosure regarding the replacement of an insurance policy?

The agent is responsible for providing an insured with proper disclosure regarding the replacement of an insurance policy. This responsibility arises because the agent is the direct point of contact for the policyholder and is tasked with ensuring that the client fully understands the implications of replacing their current insurance coverage.

When an agent facilitates a replacement, they must provide the client with specific disclosures concerning the nature of the new policy, the benefits of the current policy, and any additional implications, such as changes in premiums, coverage limits, or potential loss of benefits. The agent's role includes clarifying any complexities related to policy provisions, so the insured can make an informed decision about whether to proceed with the replacement.

While the insurer has a role in underwriting and managing the policies, it is the agent who interacts with the client to ensure proper understanding and compliance with regulatory requirements pertaining to policy replacements. The Commissioner oversees regulatory compliance but does not directly engage with individual insureds in this capacity, and the policyholder, while informed about their own insurance, does not have a duty to disclose or educate themselves on replacements. Therefore, the responsibility clearly lies with the agent.