Which of the following is NOT a valid contract exchange?

The choice indicating that an annuity is exchanged for a life insurance policy is indeed a valid exchange. In the context of insurance and investment products, exchanges often occur under specific provisions and guidelines. An annuity and a life insurance policy can serve different financial goals—annuities typically focus on providing income during retirement, while life insurance provides financial protection for beneficiaries upon the insured’s death. Both types of products are regulated and can often be exchanged under certain circumstances, especially when considering suitability for the policyholder's financial needs.

In contrast, the other options involve direct exchanges that frequently occur in common practice within the insurance industry. These exchanges are often established based on similar value, the objective of maintaining coverage, or altering the type of financial instrument one holds. Thus, it is crucial to recognize that while all options may appear related, the nature of the annuity and life insurance relationship specifically reflects a valid contractual principle under insurance law.