Life & Health Insurance Exam (National Portion)Policy Provisions, Options, and RidersHard
All of the following are typically considered optional riders in a health insurance policy, EXCEPT:
- AWaiver of Premium
- BAccidental Death and Dismemberment (AD&D)
- CCost of Living Adjustment (COLA)
- DGuaranteed Renewable
Show answer & explanationAnswer & explanation
Correct answer: D. Guaranteed Renewable
Guaranteed Renewable is a standard provision in many health insurance policies, particularly disability income and long-term care, ensuring the policy cannot be canceled and premiums cannot be increased individually, though they can be increased for an entire class of policyholders. It's a core policy feature, not an optional rider.
Why the other options are wrong
- A. Waiver of Premium is an optional rider that waives premiums during disability.
- B. AD&D is an optional rider that provides benefits for accidental death or severe injury.
- C. COLA is an optional rider that increases benefits over time to combat inflation.
Guaranteed Renewable Provision
A health insurance policy provision that guarantees the insured's right to renew the policy, with the insurer retaining the right to increase premiums on a class basis only.
- Standard policy provision, not a rider
- Cannot be canceled by insurer (except for non-payment)
- Premiums can only increase by class, not individually
Memory trick: RIDERS ADD, PROVISIONS CORE