Illinois Health Insurance Practice Exam 2025 – All-in-One Guide to Master Your Health Insurance Certification!

Image Description

Question: 1 / 400

Which provisions must an insurance company renew but can adjust rates only by class?

Noncancelable and Guaranteed renewable

Renewability provisions; guaranteed renewable

The correct answer is B. ​Renewability provisions​; guaranteed renewable. This type of provision requires insurance companies to renew policies for insured individuals as long as premiums are paid on time. However, the insurance company has the right to adjust rates only by class, meaning they can apply rate adjustments uniformly to an entire class of policyholders rather than targeting individual policyholders based on their risk factors or claims history.

Option A (Noncancelable and Guaranteed renewable) is incorrect because the noncancelable provision would prevent the insurance company from changing the premium or canceling the policy, which is not solely based on adjusting rates by class.

Options C (Intoxicants and Narcotics) and D (Illegal occupation) are irrelevant to the renewal and rate adjustment provisions in insurance policies.

Get further explanation with Examzify DeepDiveBeta

Intoxicants and Narcotics

Illegal occupation

Next Question

Report this question

Download Illinois Health Insurance Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy