Which term refers to the company whose policy is being replaced?

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Multiple Choice

Which term refers to the company whose policy is being replaced?

Explanation:
When a life insurance policy is being replaced, two insurers are involved: the company that issued the current policy and the company issuing the new policy. The policyholder’s current insurer—the one whose policy is being replaced—is the existing insurer. The other insurer that issues the new policy to take the place of the old one is the replacing insurer. The other terms don’t fit this idea: an application is the form to apply for coverage, and a premium receipt is proof that a premium has been paid.

When a life insurance policy is being replaced, two insurers are involved: the company that issued the current policy and the company issuing the new policy. The policyholder’s current insurer—the one whose policy is being replaced—is the existing insurer. The other insurer that issues the new policy to take the place of the old one is the replacing insurer. The other terms don’t fit this idea: an application is the form to apply for coverage, and a premium receipt is proof that a premium has been paid.

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