Exchange police? Do you mean law enforcement??? Or do you mean policies? Exchange for what? if you phone is damaged then likely you will get little for it, or Apple may require you get it repaired before doing any kind of trade-in or trade-up.
Apple GiveBack [formerly: Apple Recycling Program; formerly: Apple Trade-up program] - All computer and mobile devices, including non-Aple brands - "Trade in your eligible device for an Apple Store Gift Card. If it’s not eligible for credit, we’ll recycle it for free. No matter the model or condition…"
https://www.apple.com/shop/trade-in
iPhone Upgrade Program - Apple
"Get a new iPhone every year. You’re eligible to upgrade to a new iPhone once you’ve made 12 payments. Just trade in your current iPhone and start a new plan."
https://www.apple.com/shop/iphone/iphone-upgrade-program