Which of the following is included in the Florida Replacement Rule?

The Florida Replacement Rule is designed to protect consumers from inappropriate replacement of insurance policies. The essence of the rule is to provide clear guidelines around replacing an existing policy with a new one, ensuring that consumers fully understand the implications of such actions.

The correct choice pertains to reissuing an existing policy without a cash value. This situation aligns with the Replacement Rule because it highlights the importance of transparency when dealing with existing policies. The rule mandates that insurers provide consumers with a replacement notice that discusses these critical points, such as the benefits they may lose by replacing their current policy and important distinctions such as whether the existing policy has a cash value.

In contrast, the other options reflect practices that do not fulfill the essence of the Replacement Rule. For instance, issuing a new policy while an older one is in force does not inherently inform the consumer about the consequences of not replacing the policy. Providing additional benefits on existing policies does not involve replacement and therefore falls outside the scope of the Replacement Rule. Similarly, recommending a new policy while keeping the existing one may not emphasize the critical decision-making factors surrounding proper replacement, which the Florida Replacement Rule is aimed at addressing.

Thus, the focus on reissuing policies without cash value effectively underscores the need for consumer awareness during