A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a

• A. Noncancellable policy
• B. Nonrenewable policy
• C. Adjustable premium policy
• D. Guaranteed renewable policy

Answer: (D)

Guaranteed renewable protection means the insurer cannot cancel or refuse to renew the policy at its expiration, and premiums can be adjusted, but only at renewal and typically for an entire class rather than the individual policyowner. This fits a plan where you can see premium changes over time but the policy remains in force regardless of health changes or other factors.

A noncancellable policy would lock in premiums and forbid any increases, which isn’t what this item describes. A nonrenewable policy can’t be renewed at expiration, which contradicts the idea of continuing coverage. An adjustable premium term isn’t a standard, well-defined provision like guaranteed renewal, so it doesn’t align with the typical insured-vs-insurer renewal framework.