Ohio Insurance Laws and Regulations Practice Exam

Replacement is defined as the act of replacing an existing insurance policy with another. In this context, it means that the current insurance policy is being replaced with a new one. Options A, B, and D do not accurately describe this action. Annulment refers to the cancellation of a policy, reinstatement refers to restoring a cancelled policy, and surrender refers to voluntarily giving up a policy before it expires. Therefore, these options are not correct in this context. The process of replacing an insurance policy is specifically referred to as "replacement."