In California, which of the following is an obligation of the replacing insurer when replacing a life insurance policy?

In California, when replacing a life insurance policy, the replacing insurer has the obligation to notify the existing insurer of the replacement. This requirement ensures that the existing insurer is aware of the change in coverage, which can help maintain accurate records and facilitate the transfer of any relevant information pertaining to the policyholder’s coverage.

Notification is particularly important because it allows the existing insurer to inform the policyholder of any potential impacts, including any surrender charges or benefits that may apply if the policyholder decides to cancel their existing coverage. This step is a part of regulatory compliance aimed at protecting consumers during the replacement process.

The other options do not align with the requirements set forth in California law. For instance, automatic approval without a review does not ensure that the new policy is appropriate or beneficial for the insured. Waiving underwriting requirements may expose the insurer to undue risk, and the responsibility for paying surrender charges typically lies with the policyholder, not the replacing insurer.