What happens when a new policy displaces or reduces benefits of an existing policy?

What happens when a new policy displaces or reduces benefits of an existing policy?

• A. The underwriter approves the new policy automatically
• B. No disclosures are needed
• C. The old policy remains unchanged
• D. Disclosures and suitability protections apply; ensure no misrepresentation and avoid improper replacements

Answer: (D)