Question

An insurance agent proposed an individual health insurance policy that is guaranteed renewable. If the applicant accepts this policy, the insurer agrees that

A The insured will always be able to pay the premiums.
B The company will continue to renew the policy until the insured has reached age 65.
C The company will change the premium rate based upon the insured's health only.
D The premium rate cannot be changed for any reason.

Answer 1

A guaranteed renewable individual health insurance policy means that B. the policy will be renewed until the insured reaches the age of 65.

Step-by-step explanation:

A guaranteed renewable individual health insurance policy means that the insurer agrees to continue renewing the policy as long as the insured pays the premiums. It does not guarantee that the insured will always be able to pay the premiums.

Therefore, option A is incorrect.

Option B is correct. The insurance company will continue renewing the policy until the insured reaches the age of 65.

Option C is incorrect. The premium rate can be changed based on the insured's health.

Option D is incorrect. The premium rate can be changed for various reasons, not just health-related reasons.