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Compliance | Advisors Must Send LIRD (Copy) to Existing Insurer

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…The agent and applicant must sign both the LIRD and the written explanation to confirm receipt of the documents. If the applicant is not the life insured under the policy, the agent must obtain the insured person’s signature on a copy of the written explanation to confirm receipt. The agent is required to send copies of the signed materials with the application to the new insurer.

All other requirements under Regulation 674 remain the same. This includes the requirement that the agent send a copy of the signed LIRD –- but not the detailed explanation — to the existing insurer within three business days of completing the application for replacing a life insurance policy. This requirement applies only in Ontario, not in the other provinces. When sending the LIRD to the current insurer, FSCO recommends putting the policyholder’s name and policy number on the LIRD for ease of identification…

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