Which statement best describes guaranteed renewable provisions?

• A. Policy can be canceled by insurer at any time
• B. Premiums cannot be increased after issue
• C. Policy is non-renewable
• D. Policy must be renewed and premiums may increase with age or class

Answer: (D)

Guaranteed renewable provisions require the insurer to renew the policy at each renewal date as long as the premium is paid, and premiums can be increased at renewal based on the insured’s age or class. The insurer cannot cancel the policy solely to avoid renewal, and you’re guaranteed renewal even if health or age changes, though prices may go up over time.

That’s why the description that the policy must be renewed and premiums may increase with age or class fits best. The other statements imply the policy can be canceled or not renewed, or that premiums can never change, which aren’t characteristics of guaranteed renewable protections.