Which disability policy provision allows an insurer to adjust policy benefits and rates if the insured changes to a more hazardous occupation?

• A. Reinstatement provision
• B. Nonforfeiture provision
• C. Change of occupation provision
• D. Waiver of premium provision

Answer: (C)

When a disability policy includes a change of occupation clause, the insurer can re-underwrite and adjust benefits and premiums if the insured moves to a more hazardous job. This recognizes that occupation directly affects risk, so higher hazard can justify higher rates or modified benefits to keep the contract actuarially fair. The other provisions don’t address changing risk due to occupation: reinstatement is about bringing a lapsed policy back into force, nonforfeiture protects some value if the policy ends or lapses, and waiver of premium simply waives premiums during disability without changing benefits because of a new occupation.