This policy setting allows you to specify if a new encryption key should be used when the password is changed. If you enable ...

This policy setting allows you to specify if a new encryption key should be used when the password is changed. 

If you enable this policy setting, a new intermediate key is generated when the password is changed. This will cause any extra key encryptors to be removed on save.

If you disable or do not configure this policy setting, the default (do not use a new key) will be applied.