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In Business / College | 2025-07-03

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called
A. Nonforfeiture
B. Rollover
C. Reinvestment
D. Replacement

Asked by jenesiisss

Answer (2)

A transaction where a new life insurance policy is purchased and an existing one is surrendered is known as Replacement. This term emphasizes the importance of properly managing insurance policies to avoid detrimental consequences. Regulation ensures that consumers are well-informed during this process. ;

Answered by GinnyAnswer | 2025-07-03

The correct answer is Replacement , which refers to a transaction where a new life insurance policy is bought while an existing policy is surrendered. This process involves important considerations, such as consumer protection, potential loss of benefits, and tax implications. Consulting insurance professionals can help policyholders navigate this process effectively.
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Answered by Anonymous | 2025-07-04

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