Disability Income✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under a guaranteed renewable disability policy, the insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed renewable is one of the stronger renewability provisions: the insurer cannot cancel coverage as long as premiums are paid, and it cannot single out an individual for rate action, but it may increase premiums for an entire class of policyholders if justified. This protects the insured against arbitrary cancellation and individual rate discrimination while allowing the insurer to adjust rates for the whole block. The next stronger level is noncancelable, which locks both renewability and the premium schedule.
Why the other options are wrong
- B) Cancellation at any anniversary describes optionally renewable coverage, not guaranteed renewable.
- C) Premium increases under guaranteed renewable policies are by class, not targeted at one individual.
- D) A locked premium schedule is the hallmark of noncancelable coverage, not guaranteed renewable.
Memory hook
Guaranteed renewable: can't cancel you, can't raise your rate alone, but the whole class can be repriced.