Under Virginia's replacement rules for life insurance, what must the producer do at the outset when replacing an applicant's existing policy with a new one?

Why A is correct

Virginia's replacement rules, administered under 14 VAC 5-30-40, begin with disclosure: the producer must give the applicant a notice regarding replacement and collect a list of the existing life insurance being replaced, leaving copies of the completed forms with the applicant. These steps ensure the applicant understands that an exchange is occurring and can weigh whether the new policy truly serves him. The rules then route the replacement information to the insurers so both sides can evaluate the transaction.

Why the other options are wrong

• B) The existing insurer's permission is not a prerequisite; the applicant decides whether to replace, and the rules require disclosure rather than consent.
• C) Nothing in the replacement rules requires surrender of the old policy before taking the application; premature surrender is actually a practice the rules guard against.
• D) A conservation request is the existing insurer's prerogative, not something the replacing producer submits on the applicant's behalf.

Memory hook

Replacement starts with a notice and a list — the applicant sees what is being swapped.