69B-151.002. Definition of Replacement

“Replacement” means any transaction in which new life insurance is to be purchased, and it is known or should be known to the proposing agent that by reason of such transaction existing life insurance has been or is to be:

(1) Lapsed, forfeited, surrendered, or otherwise terminated;

(2) Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;

(3) Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;

(4) Reissued with any reduction in cash value; or

(5) Pledged as collateral or subjected to borrowing, whether in a single loan or under a schedule of borrowing over a period of time, for amounts in aggregate exceeding twenty-five (25%) of the loan value set forth in the policy.

Rulemaking Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.02, 4-24.11, 4-24.011, 4-151.002, Amended 12-31-15.