State RegulationsGA specificDifficulty 2/5
Georgia's life insurance replacement requirements apply to most individual transactions, but certain products are excluded from the definition of replacement. Which of the following is NOT subject to the replacement rules of Reg. 120-2-24?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg. 120-2-24, the replacement rules reach individual life insurance transactions, but credit life insurance, group life insurance, and certain annuity transactions are excluded from the rule's scope. Credit life follows a debt rather than a replacement decision about a personal policy, so the disclosure machinery does not apply to it.
Why the other options are wrong
- A) An individual whole life to individual universal life exchange at another insurer is a classic replacement fully subject to Reg. 120-2-24.
- B) An individual term to individual whole life exchange at another insurer is a replacement and triggers all disclosure duties.
- C) Funding a new individual policy at another insurer with the old policy's cash value is a replacement and is covered by the rule.
Memory hook
Credit and group life sit outside the replacement net.