Which action is required when a replacement policy is issued with changes?

• A. Explain the changes.
• B. Obtain the insured's signature acknowledgment.
• C. Explain the changes to the insured only.
• D. Explain the changes and obtain the insured's signature acknowledgment.

Answer: (D)

When a replacement policy is issued with changes, you must both explain what changed and obtain the insured’s signature acknowledgment. Explaining the changes shows what is different, but without the insured’s signature there’s no verifiable proof that the insured understood and agreed to those changes. Requiring both steps ensures clear communication, informed consent, and proper documentation for underwriting and future disputes. Explaining alone or getting a signature alone doesn’t provide the full, enforceable record, so the combination of explanation plus signed acknowledgment is the correct practice.