Florida Insurance Claims Adjuster License Practice Exam

If a health insurance policy cannot be cancelled and can be renewed at the option of the insured to a stated age with no premium increases, this policy is:

1. A. Guaranteed renewable

2. B. Optionally renewable

3. C. Noncancelable

4. D. Conditionally renewable

The correct answer is: C. Noncancelable

This policy is noncancelable because the insured is guaranteed the option to renew it, and the premium will not increase as long as it is renewed. Options A, B, and D are incorrect because they do not fully encompass the features of this specific policy. Option A is incorrect because a guaranteed renewable policy allows for cancellation but guarantees the option to renew. Option B is incorrect because an optionally renewable policy does not guarantee that premiums will not increase. Finally, option D is incorrect because a conditionally renewable policy has specific conditions that must be met in order for renewal to occur.