Which type of policy is NOT subject to the life insurance replacement laws?

Credit life insurance is the correct answer because it is specifically designed to pay off a borrower's outstanding debt, typically in relation to a specific loan or credit obligation. This type of insurance is often issued as a group policy, rather than as individual coverage, making it distinct from traditional life insurance policies.

Regulations surrounding life insurance replacement laws typically focus on individual policies where consumers may switch providers or change their coverage for various reasons. Replacement laws aim to protect policyholders from the potential drawbacks of replacing one policy with another, which commonly occurs with term and whole life insurance policies. Since credit life insurance functions primarily to cover debts and is not intended for the same personal financial liquidity or benefits as individual life insurance products, it is generally exempt from these replacement regulations.

This clarification helps underscore why credit life insurance operates outside the confines of life insurance replacement laws, distinguishing it from term life, whole life, and individual annuity contracts, which are subject to scrutiny under these laws.