Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Health InsuranceEasy
A Florida health insurance policy includes a provision that allows the insurer to non-renew the policy on a policy anniversary date, but only if all policies of the same class in the state are also non-renewed. Which type of renewability provision is this?
- ANon-Cancellable
- BGuaranteed Renewable
- CConditionally Renewable
- DOptionally Renewable
Show answer & explanationAnswer & explanation
Correct answer: C. Conditionally Renewable
Conditionally Renewable policies allow the insurer to refuse renewal under conditions stated in the policy, such as non-renewal of an entire class of policies. This differs from Optionally Renewable where the insurer has full discretion.
Why the other options are wrong
- A. Non-Cancellable policies guarantee renewability and premium rates cannot be changed by the insurer.
- B. Guaranteed Renewable policies cannot be non-renewed by the insurer, except for non-payment of premiums.
- D. Optionally Renewable policies allow the insurer to refuse renewal for any reason on the policy anniversary.
Conditionally Renewable
A health insurance renewability provision where the insurer can refuse to renew the policy only under conditions stated in the policy.
- Insurer can non-renew for specific reasons.
- Reasons are predefined in the policy.
- Often includes non-renewal of an entire class of policies.
Memory trick: Renewing health policies needs a clear condition check.