What must agents do when recommending the sale of an annuity involving a replacement?

The correct answer emphasizes the requirement for agents to have the client sign the Notice Regarding Replacement of an annuity when a replacement is involved. This document serves as an important part of the compliance process, ensuring that clients are made aware of the implications of replacing their existing annuity with a new one.

In the context of annuity replacements, the Notice Regarding Replacement helps to protect clients by informing them about the potential consequences, including any costs associated with the new annuity and how it compares to their current investment. This process ensures transparency and encourages informed decision-making by clients.

In addition, completing this notice assists in fulfilling regulatory obligations that guide agents in their conduct when it comes to recommending products that utilize replacement, ensuring that they act in the best interest of the client. Overall, having the client sign this notice is crucial for maintaining ethical standards in the industry.