Who is referred to as the Existing Insurer?

The term "Existing Insurer" specifically refers to the insurer that provides the original policy that is being replaced by a new policy. In the context of insurance, when a policyholder decides to replace their current policy with a new one, the original company that issued the initial coverage is identified as the existing insurer. This distinction is important as it helps clarify which insurer's responsibilities and obligations relate to the original policy, especially during the replacement process.

Understanding the role of the existing insurer is crucial for both agents and policyholders, as it involves considerations such as the terms of the original policy, any cash value that may be associated with it, and the implications of surrendering that policy. This ensures that the policyholder is fully informed of what they are giving up when they decide to switch insurers.