A&H Policy ProvisionsQuestion 622 of 716
If an insured changes to a LESS hazardous occupation, the change of occupation provision allows:
a.The policy to be canceled at the insurer's option
b.No change of any kind to premium or benefits
c.The premium to be reduced and any excess refunded
d.Benefits to be reduced in proportion to the premium
Explanation
A safer occupation entitles the insured to a lower rate, with the overpaid premium refunded, since the risk decreased. Benefits are not cut and the policy is not canceled.
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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)