Life Insurance Replacement Disclosure Forms (LIRD)
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:
Delivery Requirements
| 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.