Replacement Quick Tips

To ensure the replacement process goes smoothly, follow these quick tips.  Providing all state replacement requirements with the application will help to avoid closing the file as incomplete. If you have any questions about state specific requirements, please contact the Replacement team.

What Do I Need to Submit?

1. Application signed by the owner
2. 8027 state Replacement Notice
3. Illustration (if required by state)
4. Agent’s Report with completed questions regarding:

• Borrowed money
• Replacement
• Existing coverage
• Sales material used

If the state in which the application was executed has adopted the NAIC model replacement regulation, we will need a completed 8027 state Replacement Notice if the client has existing coverage, whether or not a replacement is involved.

For a 1035 Exchange (additional requirements):

1. Provide the 9685 Transfer/Exchange/Rollover form
2. Include the 1035 amount coming over
3. Insured and owner must be the same as on the old policy to the new application
4. Please note, the 1035 will occur faster if the transfer form is provided with the application

To Expedite the 1035 Process:

1. Get your client involved
2. Encourage the owner to call the other company and waive the conservation period
3. Let National Life Group know if the owner has waived the conservation period
4. When we follow up, we can let the holding company know the conservation period has been waived

Doing a Replacement in CA?

If the State of Execution is CA, and the Chronic Illness Rider is desired please submit the following forms:

1. For LS policies, 20274CA Chronic Illness Rider Supplement
2. For NL policies, 20275CA Chronic Illness Rider Supplement
3. 20218CA California Replacement Notice and Comparison form is needed if Part B #2 of the 20274CA or 20275CA is answered “yes”

Doing a Replacement in NY?

If the State of Execution is NY (Not available for LSW Business), please submit the following forms:

1. 7717NY Definition of Replacement
2. 8027NY Replacement Notice
3. 7289NYA Disclosure Statement for all life to life or life to annuity
   replacements
   7289NYB Disclosure Statement for all annuity to annuity replacements
   7289NYC Disclosure Statement for all term to term replacements
4. Illustration

Additional Notes for NY Replacements: 

Agents may wish to await underwriter approval before submitting the applicable 7289NY and illustration in case the policy is not approved as submitted. When a 1035 exchange is involved, the Replacement team will advise of the total 1035 money received. This information should be used to complete the 7289NY and illustration to reflect the exact amount received.

The State of New York requires that the agent provide a copy of the applicable 7289NY Disclosure Form to the owner. Therefore, we will send a copy of the 7289NY along with the policy for the agent to deliver to the owner.

Once we let you know of any requirements:

1. Provide what is needed in the time frame given
2. Let us know what further requirements are coming

Finally, please indicate any special instructions regarding replacement on the Agent’s Report or New Business checklist.

 

TC91461(0816)1