In the process of replacing an insured's current health insurance policy with a new one, what is a proper action for the agent?

The appropriate action for an agent when replacing an insured's current health insurance policy with a new one is to ensure that the old policy remains in effect until the new policy is officially issued. This approach is critical for protecting the insured from potential gaps in coverage. If the old policy is canceled before the new one is activated, the insured could be left without coverage during the interim period, which could lead to significant financial risk if a health-related issue arises.

Maintaining the old policy in force ensures continuous coverage and peace of mind for the insured. Proper procedures often involve a “replacement notice” that facilitates the transition and informs the insured of the implications of replacing their current coverage. In this way, the integrity of the insured's coverage is preserved throughout the transition process.