What documentation must the replacing insurance company send to the existing insurers?

The replacement insurance company is required to send a communication advising of the proposed replacement to the existing insurers. This requirement is part of the regulatory process aimed at protecting consumers during the transition between policies. It ensures that the current insurers are informed that their policyholder is considering a replacement. This communication serves to provide the existing insurer an opportunity to explain the advantages of maintaining the current policy and to clarify any potential implications resulting from the switch, such as lapses in coverage or changes in benefits.

Other documentation options listed do not fulfill the specific regulatory requirements tied to the protection of policyholders during the replacement process. For instance, a full policy report might contain too much detailed information that is not necessary for informing the existing insurers about the replacement. A declaration of policy lapsing is not typically required as it pertains more to the policyholder's responsibilities rather than the communication between insurers. Lastly, a contract of transfer is not relevant in this context since the replacement process does not involve the transfer of policy contracts directly; rather, it involves notifying existing insurers of the policyholder's decision to initiate a replacement.