Question 66

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

Individual health insurance that is optionally renewable allows the insurer to decide whether to renew the policy at the end of the term, meaning the continuation of coverage is not guaranteed for the insured.

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 that the insured can continue the policy until a specific age; rather, the insurer has discretion over renewal.

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

While it is true that insurers can raise premiums, this option is misleading because it implies that the policy cannot be canceled at all, which is not accurate for optionally renewable policies where cancellation is possible at the insurer's discretion.

C) No provision is made for renewal or termination

This statement is incorrect as it contradicts the very nature of optionally renewable policies, which explicitly include provisions regarding renewal options and the possibility of termination by the insurer.

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

This is the correct statement, accurately reflecting that the renewal of the policy is contingent upon the insurer's decision, aligning with the definition of optionally renewable insurance.

Conclusion

The correct answer, option D, clearly encapsulates the nature of optionally renewable individual health insurance, where renewal is strictly at the discretion of the insurer. All other options either misrepresent the rights of the insured or fail to acknowledge the key characteristics of such insurance policies. Thus, option D stands as the only accurate choice.