Long-Term Care✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under a guaranteed renewable long-term care policy, the insurer may take which action?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Guaranteed renewable means the insurer cannot cancel or refuse renewal as long as premiums are paid, but it may raise premiums if the increase is applied to the entire class of similar policies rather than to one individual. This is the standard renewability basis for individual LTC policies. AH-V.1g tests guaranteed renewability and rate behavior, and the class-wide increase rule is the defining feature.
Why the other options are wrong
- A) Cancellation based on claim experience is exactly what the guaranteed renewable promise forbids.
- C) Singling out one insured for a rate increase would violate the class-wide requirement.
- D) Premiums can rise by class; guaranteed renewable locks renewal, not necessarily the premium.
Memory hook
Guaranteed renewable = renew for life, but the whole class can share a rate hike.