Montana State Life Insurance Practice Exam 2025 - Free Life Insurance Practice Questions and Study Guide

The correct choice emphasizes that the existing insurer must notify policy owners about how the release of policy values may affect various policy elements. This information is crucial for policyholders to understand the implications of accessing their policy values, which could include adjustments to benefits, premiums, or the overall structure of the policy. When policy values are released, there can be significant impacts on the future performance and guarantees provided by the policy, and it's the insurer’s responsibility to ensure that policy owners are well informed.

Understanding these ramifications can help policyholders make better decisions regarding their insurance coverage, including potential adjustments to how they manage their policies or their expectations of benefits. This provision reflects a broader commitment to transparency in the insurance industry, as clear communication is vital for maintaining trust and ensuring policyholders can effectively navigate their financial options.

Other options, while relevant in their own contexts, do not directly address the mandatory notification related to the release of policy values and its specific effects on the policy elements, which is the focus of the correct response.