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, but could adjust premiums. What is this policy called?

1. A non-cancelable policy

2. A major medical policy

3. A hospitalization policy

4. A guaranteed renewable policy

The correct answer is: A guaranteed renewable policy

A major medical policy is a different type of insurance that covers more expensive medical treatments and procedures. This type of policy may have higher premiums but also provides more comprehensive coverage, unlike the given policy. A hospitalization policy only covers the costs of hospitalization and related expenses, so it does not have the same renewal provision as the given policy. A non-cancelable policy is one where the insurer cannot cancel the policy as long as the premiums are paid, but it does not have the same renewal provision as the given policy. A guaranteed renewable policy also has a renewal provision, but it cannot adjust the premiums and must renew the policy for a specific period of time or until a certain age. This is why a guaranteed renewable policy is the correct answer for the given question.