(h) “Replacement” means a transaction in which a new policy or contract is to be purchased, and it is known or should be known to the proposing producer, or to the proposing insurer, regardless of whether or not there is a producer, that by reason of the transaction, an existing policy or contract has been or is to be any of the following:

1. (1) Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer, or otherwise terminated.
2. (2) Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values.
3. (3) Amended so as to effect either a reduction in benefits or a reduction in the term for which coverage would otherwise remain in force or for which benefits would be paid.
4. (4) Reissued with any reduction in cash value.
5. (5) Used in a financed purchase.

(i) “Suitability information” means information that is reasonably appropriate to determine the suitability of a recommendation, including all of the following:

1. (1) Age.
2. (2) Annual income.
3. (3) Financial situation and needs, including the financial resources used for the funding of the annuity.
4. (4) Financial experience.
5. (5) Financial objectives.
6. (6) Intended use of the annuity.
7. (7) Financial time horizon.
8. (8) Existing assets, including investment and life insurance holdings.
9. (9) Liquidity needs.
10. (10) Liquid net worth.
11. (11) Risk tolerance.
12. (12) Tax status.
13. (13) Whether or not the consumer has a reverse mortgage.
14. (14) Whether or not the consumer intends to apply for means-tested government benefits, including, but not limited to, Medi-Cal or the veterans’ aid and attendance benefit.