State RegulationsGA specificDifficulty 2/5
Georgia's life insurance replacement regulation governs individual life policies. Which of the following transactions is generally OUTSIDE the scope of the replacement rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Georgia's replacement regulation, Reg. 120-2-24, applies to individual life insurance; credit life and group life are among the transactions carved out of its scope, and certain annuities are excluded as well. An exchange of one individual life policy for another — term, whole life, or universal life — remains squarely within the rule's disclosure and notice duties.
Why the other options are wrong
- A) Replacing one individual whole life policy with another is the classic covered replacement.
- C) An individual term policy replaced by a new individual policy is within the regulation's scope.
- D) Universal life replaced with new individual coverage is within the regulation's scope.
Memory hook
Credit and group step outside the replacement rule.