Regarding whether an endorsement to provide a new benefit under an in-force exempt life insurance policy for no cost and without any underwriting requirement, to a defined set of policyholders, would constitute a disposition, CRA stated:
[I]t is necessary to determine whether the changes that are made to the terms of the policy, including but not limited to endorsements providing additional benefits, are so fundamental as to go to the root of the policy. If this were the result, there would be a disposition of the policy and the acquisition of a new policy.
Where a policy is silent with respect to a particular type of change, the amending of the policy, if a material change, could result in a disposition of the existing policy and the acquisition of a new policy at law. [This] is a mixed question of fact and law … .