Which document must be provided during a policy replacement involving a cash value decrease?

In the context of policy replacement involving a cash value decrease, the Notice Regarding Replacement of Life Insurance or Annuity is the required document that must be provided to the policyholder. This notice serves several important purposes.

Firstly, it ensures that the policyholder is fully informed about the implications of replacing their existing policy with a new one. Specifically, the notice highlights key information about the differences between the old policy and the new policy, particularly in terms of cash value and benefits. By requiring this disclosure, West Virginia laws aim to protect consumers from making uninformed decisions that could adversely affect their financial situation.

Additionally, this notice typically includes information about the potential loss of benefits, including any cash value that may decrease as a result of the replacement, which is critical for ensuring that consumers understand the long-term impact of their choices.

The importance of this document lies in its role in fostering transparency and enabling policyholders to make informed decisions regarding life insurance or annuities, particularly when considering the possible negative consequences of a cash value decrease.