(1) The purpose of this subchapter is:

(a) to regulate the activities of insurers and producers with respect to the replacement of existing life insurance and annuities;

(b) to protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be observed in replacement, proposed replacement, or financed purchase transactions.   It will:

(i) assure that purchasers receive information with which a decision can be made in his or her own best interests;

(ii) reduce the opportunity for misrepresentation and incomplete disclosures; and

(iii) establish penalties for failure to comply with the requirements of this subchapter.