A Policy in Which the Insurer Cannot Increase Premium Rates

question 38

Multiple Choice

A policy in which the insurer cannot increase premium rates and must renew the policy until the insured reaches the age specified in the contract is a

• A) cancelable policy.
• B) conditionally renewable policy.
• C) guaranteed renewable policy.
• D) noncancelable policy.

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Definitions:

Salesperson's Statement

A formal or informal communication by a salesperson, intended to persuade or inform potential buyers about a product or service.

Bargaining Process

The series of negotiations and compromises between two or more parties seeking to make a mutually acceptable agreement.

Breach of Warranty

Failure to fulfill the terms of a promise, claim, or representation made about the quality or type of a product.

Repair or Replace

This refers to the decision or policy regarding whether to fix a damaged or malfunctioning item or to substitute it with a new one.