A client is considering replacing their existing life insurance policy with a new one offered by a different insurer. According to Canadian disclosure requirements, which of the following actions is the replacing insurer's agent *most* obligated to take?

Question: A client is considering replacing their existing life insurance policy with a new one offered by a different insurer. According to Canadian disclosure requirements, which of the following actions is the replacing insurer's agent most obligated to take?

Answer options: ✅ Provide the client with a written comparison of the benefits and features of both policies, highlighting any potential disadvantages of the replacement.

• Obtain a signed waiver from the client acknowledging they understand the implications of replacing their policy.
• Inform the existing insurer of the client's intent to replace their policy within 10 business days.
• Assist the client in completing the surrender forms for their current policy, if requested.

Correct answer: Provide the client with a written comparison of the benefits and features of both policies, highlighting any potential disadvantages of the replacement.

Explanation: Life insurance agents are required to adhere to strict disclosure rules when a policy replacement is being considered. The agent of the replacing insurer must provide the client with a written comparison of both policies, clearly outlining the advantages and disadvantages, to ensure the client makes an informed decision as per the provincial regulations governing insurance sales practices.