The primary purpose of life insurance replacement regulation is to protect which of the following?

The primary purpose of life insurance replacement regulation is to protect policy owners. These regulations are designed to ensure that consumers are fully informed about the implications of replacing an existing life insurance policy with a new one. This includes considerations such as potential loss of benefits, changes in coverage, and the financial implications of switching policies. By focusing on the interests of policy owners, the regulations help them make informed decisions that align with their long-term financial goals and needs.

Protecting policy owners is critical because they may not fully understand the complexities and nuances of insurance products. Regulations often require insurance agents to provide detailed disclosures, comparisons, and evaluations of the existing policy versus the new one, ultimately allowing policy owners to weigh their options carefully before making a decision.