K has a health policy requiring renewal by the insurer, with premium increases applicable to the entire class of insureds. This is considered which type of policy?

The correct answer describes a Guaranteed Renewable policy, which means that the insurer is required to renew the policy as long as the insured continues to pay the premiums. This type of policy often involves premium adjustments, which may be applied to an entire class of insureds rather than individual cases. This ensures that the policyholder can maintain coverage regardless of health status changes, which provides a significant advantage in terms of long-term access to health insurance.

In a Guaranteed Renewable policy, while the insurer can increase premiums, it must do so based on the overall risk of the insured class and not due to the individual circumstances of the policyholder. This characteristic emphasizes consumer protection, allowing individuals to remain insured even if they experience health issues that could otherwise affect their ability to acquire or maintain coverage.

Different types of renewable policies exist, such as Non-Cancelable, which prohibits premium increases and ensures the policy cannot be canceled except for non-payment, and Conditionally Renewable, allowing for renewal only under specific conditions laid out in the policy. Optionally Renewable gives the insurer the discretion to renew or not, which places more risk on the insured. However, the Guaranteed Renewable policy's framework is beneficial for policyholders, offering both assurance of renewal and the understanding that premium adjustments will be