Question on Chapter 15 Quiz

Question on Chapter 15 Quiz

by Marie Tan -
Number of replies: 1

Hi there - just was confused with this question. Answer was Guaranteed Renewable.  But, wouldn't Non-cancelable be also correct?  It wasn't clear to me if the non-cancelable would still be renewed regardless if the premium was paid or not.


If Jack has an insurance policy that must be renewed as long as the premiums are paid, what type of policy does he have?
Select one:
A. Optionally Renewable
B. Guaranteed Renewable
C. Non-cancelable
D. Conditionally Renewable

In reply to Marie Tan

Re: Question on Chapter 15 Quiz

by Jerry Bateman - -

Hey Marie,

The word that gives away the answer is renewed. Noncancelable pertains more to the fact that the premium is set by the contract and cannot be changed. When it comes to DI policies we see them characterized as noncancelable and guaranteed renewable. Thank you.

Jerry Bateman