California Insurance Code & EthicsQuestion 79 of 315
California's replacement regulations apply when:
a.Only when the policyowner is age 65 or older
b.Only when the producer changes companies
c.Only when the same insurer issues both the old and new policy
d.An existing life or annuity policy will be lapsed, surrendered, converted to paid-up, borrowed against to fund the new contract, or otherwise reduced in value as part of the transaction
Explanation
Replacement is broadly defined: any transaction where existing coverage will be terminated, modified, or used as a funding source for the new contract is a replacement, regardless of insurer or insured age.
Law Reference: Cal. Ins. Code §10168.1Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)