Florida Insurance Licensing Practice Exam 2025 - Free Insurance Licensing Practice Questions and Study Guide

Question: 1 / 400

A health insurance policy was issued containing the provision that the insurance company must renew the policy to a particular age and could not adjust the premiums. What is this policy called?

A non-cancelable policy

A health insurance policy that cannot be canceled by the insurance company and has a fixed premium until a particular age is called a non-cancelable policy. This means that the policyholder can keep the policy for life as long as they continue to pay the premiums. The other options are incorrect because

- Option B, a major medical policy, refers to a type of health insurance that covers expensive and catastrophic medical procedures, but it does not have the specific provision mentioned in the question.

- Option C, an optionally renewable policy, allows the insurance company to decide whether or not to renew the policy, often at a different premium or with different terms. This is not the case in the question.

- Option D, a guaranteed renewable policy, guarantees that the policy will be renewed until a certain age as long as the premiums are paid, but it does not have the specific provision that premiums cannot

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A major medical policy

An optionally renewable policy

A guaranteed renewable policy

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