Ohio Insurance Laws and Regulations Practice Exam

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Study for the Ohio Insurance Laws and Regulations Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Practice this question and more.

What is defined as exchanging an existing life policy for a new policy?

Life insurance adjustment
Life insurance alignment
Life insurance replacement
Life insurance renewal

The correct answer is: Life insurance replacement

When an individual exchanges their existing life insurance policy for a new one, it is called a life insurance replacement. This term specifically refers to the act of cancelling an old policy and purchasing a new one with potentially different terms and benefits. This is different from a policy adjustment, which would involve making changes to an existing policy without replacing it entirely. Choosing options A, B, or D would be incorrect as they do not accurately describe the act of exchanging one life insurance policy for another.