The province of Saskatchewan introduced the Life Insurance Replacement form (LIRD) last year, doing away with the 3-ply Life Insurance Replacement Disclosure Form.
It was felt that disclosure is best achieved with a combination of point of sale and use of the LIRD*. The LIRD is formatted as a questionnaire and is intended to advise the consumer of the importance of obtaining information respecting their existing insurance before they decide to replace it.
Advisors will continue to have a duty to document a transaction on file, through notes during discussions/interviews with a client, needs analysis, correspondences and as well as other means of communication or documents provided to a client before and during the sales process.
A copy of the LIRD can be obtained at: https://www.skcouncil.sk.ca/media/wvpi2zqj/life-insurance-replacement-declaration-lird-form.pdf
Following are provinces that will accept the LIRD:
|Province||Client||New Insurer||Existing Insurer|
|Alberta||LIRD and written explanation|
|British Columbia||LIRD and written explanation|
|Manitoba||LIRD and written explanation||LIRD|
|New Brunswick||LIRD and written explanation|
|Newfoundland & Labrador||LIRD and written explanation||LIRD and written explanation||LIRD|
|Northwest Territories||LIRD and written explanation|
|Nova Scotia||LIRD and written explanation|
|Nunavut||LIRD and written explanation|
|Ontario||LIRD and written explanation||LIRD and written explanation||LIRD|
|Prince Edward Island||LIRD and written explanation|
|Quebec||Prior Notice of Replacement form must be completed||Prior Notice of Replacement form must be completed||Prior Notice of Replacement form must be completed|
|Saskatchewan||LIRD and written explanation|
|Yukon||LIRD and written explanation|
*The Insurance Acts of these jurisdictions do not prescribe replacement disclosure. Use of the LIRD is recommended not required.