Question

Any transaction in which a new life policy or annuity is to be purchased, and the producer knows, or should know, that existing contract(s) will be: lapsed, forfeited, surrendered, terminated, reduced in value, amended with a reduction in benefit or term, have a reduced cash value, or is subjected to borrowing, is best known as a __________.

Answer 1

Replacement

Step-by-step explanation:

The transaction that related to the new policy or annuity that to be buy and the producer aware that the last contract should be lapsed, terminated or there is a decrease in value that amends with the decrease in the benefit with respect to the borrowing so this we called as the replacement that means here we replace the policy with the new one