Florida Insurance Licensing Practice Exam

A health insurance policy was issued containing the provision that the insurance company must renew the policy to a particular age and could not adjust the premiums. What is this policy called?

1. A non-cancelable policy

2. A major medical policy

3. An optionally renewable policy

4. A guaranteed renewable policy

The correct answer is: A non-cancelable policy

A health insurance policy that cannot be canceled by the insurance company and has a fixed premium until a particular age is called a non-cancelable policy. This means that the policyholder can keep the policy for life as long as they continue to pay the premiums. The other options are incorrect because - Option B, a major medical policy, refers to a type of health insurance that covers expensive and catastrophic medical procedures, but it does not have the specific provision mentioned in the question. - Option C, an optionally renewable policy, allows the insurance company to decide whether or not to renew the policy, often at a different premium or with different terms. This is not the case in the question. - Option D, a guaranteed renewable policy, guarantees that the policy will be renewed until a certain age as long as the premiums are paid, but it does not have the specific provision that premiums cannot