When a producer is replacing an existing ordinary life insurance policy, which of the following actions is NOT required?

In the process of replacing an existing ordinary life insurance policy, certain disclosures and documentation are mandated to ensure transparency and to protect the policyholder. However, obtaining the beneficiary's signature on a summary of all policies to be replaced is not a required action within this process.

The primary focus during the replacement of life insurance policies is to ensure that the applicant fully understands what they are giving up and what they are gaining with the new policy. This is usually accomplished through the issuance of the Notice Regarding Replacement of Life Insurance, which must be provided to the applicant along with a copy of any proposals used in the sales presentation. These actions help to clarify the details for the policyholder, allowing them to make an informed decision.

The requirement for submitting a signed copy of the Notice to the insurance company reinforces the proper documentation of the replacement process for regulatory compliance. Meanwhile, requiring the beneficiary's signature on a summary of the policies is not a commonly mandated practice, making this action unnecessary compared to the other requirements that focus on the applicant's understanding and consent. This is why it is correct that obtaining the beneficiary's signature on a summary is not a requirement when a producer is replacing an existing policy.