Final answer:
The right of renewability that does not guarantee insurability if certain circumstances happen and allows the insurer to increase premiums is called conditional renewable.
Step-by-step explanation:
The right of renewability that does not guarantee insurability if certain circumstances happen and allows the insurer to increase premiums is called conditional renewable.
Conditional renewability refers to the insurer's ability to renew the policy, but with specific conditions and changes to the policy terms. This means that even though the policy can be renewed, the insurer can choose to increase the premiums or modify the coverage based on changes in the insured's risk profile or other factors that may impact the insurability.
For example, if a policyholder has made several claims or has developed a pre-existing medical condition during the policy period, the insurer may decide to renew the policy but increase the premiums to account for the higher risk associated with covering the individual.