Ace the Florida Life & Health Insurance Test 2025 – Dive In and Secure Your Success!

Question: 1 / 400

How is Life insurance replacement defined in Florida?

Buying a new policy with enhanced benefits

Exchanging one policy for another with the same insurer

A transaction where a new policy is bought and an old policy is discontinued

Life insurance replacement in Florida is defined as a transaction where a new policy is bought and an old policy is discontinued. Option A is incorrect because buying a new policy with enhanced benefits may not necessarily involve discontinuing an old policy. Option B may seem like a close choice, but exchanging one policy for another with the same insurer is not a replacement, as the insurance company remains the same. Option D is incorrect as transferring policy ownership is different from a complete replacement of a policy. Therefore, the best answer is C as it accurately describes what life insurance replacement entails.

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Transferring policy ownership

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