Question 66

The policy may be renewed only at the insurer's option.

In the case of optionally renewable individual health insurance, the insurer retains the right to decide whether or not to renew the policy at the end of each renewal period, making option D the correct statement.

A) The insured has a right to continue the policy until a specified age

This option is incorrect because optionally renewable policies do not guarantee the insured the right to continue coverage until a certain age. Instead, the insurer can choose not to renew the policy, which does not align with this statement.

B) The insurer can raise the premium but cannot cancel the policy

This statement is misleading. While it is true that an insurer can raise premiums, they also have the option to cancel the policy upon renewal. Therefore, this option does not accurately capture the nature of optionally renewable policies.

C) No provision is made for renewal or termination

This option is incorrect as it misrepresents the nature of optionally renewable insurance. Such policies explicitly include provisions for renewal, but the decision to renew lies solely with the insurer, which contradicts this statement.

D) The policy may be renewed only at the insurer's option

This statement is accurate because it reflects the core characteristic of optionally renewable policies: the insurer has discretion over renewal decisions at the end of each term, which is the essence of this type of insurance.

Conclusion

Option D is definitively correct as it encapsulates the key feature of optionally renewable individual health insurance, where renewal is not guaranteed and is solely at the insurer's discretion. All other options fail to accurately describe the terms and conditions of such policies, either misrepresenting rights of the insured or the insurer's authority regarding policy renewal.