Illinois Health Insurance Practice Exam

Which insurance feature pertains to the insurance company's inability to cancel a policy as long as premiums are paid?

1. Convertible Provision

2. Renewability Provision

3. Concealment Provision

4. Cancellation Provision

The correct answer is: Renewability Provision

The correct answer is B. Renewability Provision. This insurance feature ensures that the insurance company cannot cancel a policy as long as the policyholder continues to pay the premiums. It provides the policyholder with the security of knowing that their coverage will not be terminated due to unforeseen circumstances or changes in their health status. Option A, Convertible Provision, refers to the policyholder's ability to convert their existing policy to a different type of policy offered by the same insurance company without the need for additional underwriting. Option C, Concealment Provision, pertains to the policyholder's obligation to provide accurate and complete information to the insurance company to avoid any issues with coverage in the future. Option D, Cancellation Provision, gives the insurance company the right to cancel a policy under certain conditions, such as non-payment of premiums or fraudulent activities.