Final answer:
Replacement regulation is designed to protect policy owners from misrepresentations and loss of benefits.
Step-by-step explanation:
Replacement regulation is designed to protect policy owners from misrepresentations and loss of benefits. When an insurance policyholder needs to replace an existing policy, replacement regulations ensure that the new policy is suitable and provides adequate coverage. This helps to safeguard the interests of the policyholder and prevent any potential risks or financial loss.