Which situation is NOT subject to the Florida Replacement Rule?

In the context of the Florida Replacement Rule, the correct choice highlights a scenario where the rules do not apply. The Replacement Rule is designed to protect policyholders from potential negative consequences that may arise when they terminate an existing insurance policy in favor of a new one. Specifically, the rule pertains to situations where one policy is replaced with another, either within the same insurance company or with a different insurer.

When an existing policyholder purchases an additional policy from the same insurer without terminating the original policy, there is no replacement of the existing coverage. The insurance coverage remains intact because the policyholder has simply added coverage rather than replacing what they already had. This means the Replacement Rule does not impose requirements that are typically associated with the termination and replacement of an existing policy.

In contrast, when a policyholder terminates their existing policy or switches to a different insurer, it would trigger the Replacement Rule because these actions involve potential loss of coverage and require certain disclosures and responsibilities to ensure the policyholder is making an informed decision. Similarly, if an insurer replaces an existing policy with a new one, it falls under the Replacement Rule as it involves replacing coverage, which requires compliance with specific guidelines to safeguard the policyholder's interests.