Question

David is comparing two health insurance policies that have similar benefit provisions, but one is guaranteed renewable while the other is non-cancellable. David is not sure of the difference between these provisions, and has come to you for help. Which of the following statements is correct? a. Non-cancellable policies guarantee policy renewal until age 65 with no premium increases. b. Guaranteed renewable policies permit the insurance company to increase the premium based on the insured's claim experience, but must offer to renew the policy. c. Non-cancellable policies are generally less expensive than guaranteed renewable policies. d. Guaranteed renewable policies may be renewed in the sole discretion of the insurer.

Answer 1