What is defined as exchanging an existing life policy for a new policy?

When an individual exchanges their existing life insurance policy for a new one, it is called a life insurance replacement. This term specifically refers to the act of cancelling an old policy and purchasing a new one with potentially different terms and benefits. This is different from a policy adjustment, which would involve making changes to an existing policy without replacing it entirely. Choosing options A, B, or D would be incorrect as they do not accurately describe the act of exchanging one life insurance policy for another.