Kevin has an individual major medical policy that his insurer agrees to keep in force until age 65.However,the company has the right to increase the premium each year for the underwriting class in which Kevin has been placed.Which renewal provision is found in Kevin's policy?

Question

Quizplus · Accepted Answer

The fact that the company has the right to increase the premium each year indicates that the policy is not noncancellable. The fact that the policy can be kept in force until age 65 indicates that it is renewable. The fact that the renewal is subject to potential premium increases indicates that it is not nonrenewable. Therefore, the renewal provision is most likely guaranteed renewable, which would allow the insurer to change the premium rates but would still require them to renew the policy each year as long as the premiums are paid on time.

Kevin Has an Individual Major Medical Policy That His Insurer