Question

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?

a) Change of Occupation provision
b) Occupational Hazard provision
c) Hazardous Occupation clause
d) Occupational Adjustment provision

Answer 1

The Change of Occupation provision in a disability policy allows the insurer to adjust policy benefits and rates when the insured changes to a more hazardous occupation.

Step-by-step explanation:

The correct answer is a) Change of Occupation provision.

When an insured changes to a more hazardous occupation, the Change of Occupation provision in a disability policy allows the insurer to adjust policy benefits and rates. This provision ensures that the insurer can account for the increased risk associated with the new occupation and modify the terms of the policy accordingly.

For example, if someone initially had a disability policy as a desk job employee but later takes up a job as a construction worker, the Change of Occupation provision would allow the insurer to make appropriate adjustments to the policy.