Rights of Renewability Flashcards
1
Q
What are the key features of a non-cancellable insurance policy?
A
The insurer cannot cancel the policy, nor increase the premium beyond what is stated in the policy unless such increases are outlined in the policy terms
2
Q
Under what conditions can a cancellable policy be terminated by the insurer?
A
The insurer can cancel the policy at any time, provided they give proper written notice to the policyholder.
3
Q
What assurances does a guaranteed renewable policy provide to the policyholder?
A
The policyholder has the unilateral right to renew the policy for the life of the contract. The insurer may not cancel the policy but can increase premiums on a class basis only.
