New Jersey Life Insurance Exam Practice Question
Replacement rules apply to
Correct Answer: C
Rationale: Replacement rules are designed to protect consumers when they switch from one insurance policy to another. Whole Life policies, which provide lifelong coverage and a cash value component, are subject to these rules due to their complexity and long-term commitment.
Group Annuities (A) and Group Life (B) typically involve collective policies for groups, which do not usually require the same replacement considerations as individual policies. Credit Life (D) is often tied to specific loans and is less likely to involve replacement rules since it's not a standalone policy. Thus, Whole Life stands out as the option where replacement rules are most applicable.
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