Common use of Improper Replacement Clause in Contracts

Improper Replacement. Broker-Dealer and its Registered Representatives shall not make any misrepresentation or in complete comparison of products for the purpose of inducing a current or potential contract owner or policyholder to lapse, forfeit or surrender his or her current insurance contract in favor of purchasing Company’s or other insurer’s product. Communication with clients shall include sufficient information regarding the appropriateness of the transaction to allow the client to make an informed decision.

Improper Replacement. Broker-Dealer and its Registered Representatives shall not make any misrepresentation or in complete incomplete comparison of products for the purpose of inducing a current or potential contract owner or policyholder to lapse, forfeit or surrender his or her current insurance contract in favor of purchasing Company’s or other insurer’s product. Communication with clients shall include sufficient information regarding the appropriateness of the transaction to allow the client to make an informed decision.