Final answer:
An optionally renewable policy allows the insurer to cancel the policy on any specified date and increase the policy's premiums for any class.
Step-by-step explanation:
With an optionally renewable policy, the insurer has the option to renew or cancel the policy at specific intervals, usually on the policy anniversary date. Additionally, the insurer can adjust the premiums based on the risk associated with different classes of insured individuals.
The type of policy that allows the insurer to cancel a policy on any specified date, and to increase a policy's premiums for any class is D. Optionally renewable policy.
The terms of this policy give the insurer the option to review the policy at the end of the term and decide whether or not to offer renewal. With an optionally renewable policy, the insurer has the discretion to terminate the policy on a specified date or to adjust the premium rates for any class of policyholders.
Therefore the correct answer is D. Optionally renewable policy.