Are new life insurance policies considered replacements if the insured had an old lapses policy?

Contact your state's department of insurance if you are in doubt. The acid test is if the old policy was lapsed due to the new policy.

Two possible scenariOS:

1. A proposed insured had a policy that lapsed several years ago because they (and their broker or agent) did not watch it closely. Then today, the proposed insured decides to acquire coverage again. Not replacement.

2. An agent encourages an insured to cancel their policy today and then writes a new policy (perhaps with the promise of a conditional receipt). This is replacement because the insured canceled their old policy due to the new one. It is also dangerous because the consumer does experience a period of time without insurance, however brief. The conditions of the temporary insurance also may not be met or the new policy may not be issued due to unforeseen circumstances, leaving the consumer with no insurance at all.