A 1035 exchange form is the carrier-approved document that authorizes a tax-free transfer of policy or annuity values directly from the existing insurer to the new insurer. The form captures owner and contract details, specifies the type of 1035 exchange, and includes signatures, medallion or notary requirements, and any state-mandated replacement paperwork. When properly completed, the forminitiates carrier-to-carrier transfer, maintains tax deferral, and prevents constructive receipt. Itis often accompanied by disclosures, suitability forms, and replacement notices to document reasons,fees, and potential surrender charges tied to the transaction.

Operationally, the 1035 exchange form triggers the carrier-to-carrier transfer. Advisors complete italongside replacement disclosures and suitability forms, list ownership, contract numbers, andexchange type, and gather required signatures. The new carrier sends the request to the relinquishing carrier, who liquidates and transfers values directly to preserve tax deferral.Advisors track the process, verify receipt, and confirm allocations on the new contract. The form'accuracy prevents constructive receipt issues and delays, making it the central document that turns planned replacement into a compliant, tax-free transaction for the client.