A&H Policy ProvisionsQuestion 621 of 716
Under the optional 'change of occupation' provision, if an insured changes to a MORE hazardous occupation, benefits will generally be:
a.Reduced to what the premium already paid would purchase at the more hazardous classification
b.Terminated immediately, because moving to a more hazardous job voids the contract at the moment of the change
c.Left completely unchanged, since the occupational class is fixed at issue and never affects the benefit amount
d.Increased in proportion to the added risk, with the insurer billing the shortfall in premium at the next renewal
Explanation
Moving to a riskier job means the premium paid buys less coverage, so benefits are reduced to that level rather than the insurer collecting more. Benefits are not increased, unchanged, or terminated.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)