Naledi recommends that a client replace an existing long-term insurance policy with a new one. Besides advising the client properly, what additional obligation arises specifically because a long-term policy is being replaced?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

1. a) The replacement of the long-term policy must be reported to the relevant long-term insurer within the prescribed period.Correct
2. b) No analysis is needed at all because the client has already decided to switch.
3. c) The client must be told only that there may be unspecified limitations on switching.
4. d) The provider may proceed without any comparison of the old and new policies.