California Insurance Code

§ 10509.2

INS § 10509.2Div. 2 · Part 2 · Ch. 5 · Art. 8

Statute text

(a)“Replacement” means any transaction in which new life insurance or a new annuity is to be purchased, and it is known or should be known to the proposing agent, or to the proposing insurer if there is no agent, that by reason of that transaction, the existing life insurance or annuity has been or is to be any of the following:

(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.

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Legislative history

Amended by Stats. 1991, Ch. 380, Sec. 2.