A&H Policy ProvisionsQuestion 38 of 716
Under a guaranteed renewable individual health policy, what may the insurer do at renewal?
a.Cancel the policy mid-term because its claims experience has become unprofitable
b.Raise the premium for that one insured alone, based on that insured's own claim history
c.Raise the premium for an entire class of insureds, but must still renew
d.Refuse to renew at any point inside the stated contract period, for any reason it chooses
Explanation
Guaranteed renewable means the insurer must renew up to the stated age, cannot cancel except for non-payment, and may only adjust premiums on a class basis — never against a single insured.
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Related questions on this topic
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)