All of the following actions constitute a policy replacement EXCEPT:

A) surrendering an existing permanent life policy for its cash value so it can be used to purchase another life policy.

B) changing dividend options from paid-up additions to cash payment on an existing whole life policy.

C) electing an extended term nonforfeiture option on an existing permanent life policy.

D) electing a reduced paid-up nonforfeiture option on an existing whole life policy.

Answer: B) changing dividend options from paid-up additions to cash payment on an existing whole life policy.