L&HNJmedium
Under N.J.A.C. 11:4-2, a 'financed purchase' is treated as a replacement when the new premium is funded by which source?
AA bank loan secured by the applicant's home or other personal real property pledged as collateral to the lender
BThe applicant's earned wages
CGifts received from a relative
Values withdrawn, borrowed, or surrendered from an existing life or annuity contract
Why this is the answer
N.J.A.C. 11:4-2 treats a transaction as a financed purchase, and therefore a replacement, when the new premium is funded by values withdrawn, borrowed, or surrendered from an existing life or annuity contract.
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