Life · Chapter 21 · Replacement
Conservation
Definition
The existing insurer's effort to retain the policy after being notified of a proposed replacement. Advance notice of the replacement gives the current insurer the chance to contact the client and attempt to keep the business in force — that retention effort is called conservation.
In plain English
The old company's save-the-sale phone call — made possible because replacement rules force advance warning.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms