An Ohio disability income policy is guaranteed renewable. Which statement correctly describes the insurer's rights?

Why D is correct

A guaranteed renewable policy obligates the insurer to continue coverage at the insured's option, but it permits premium increases only on a class-wide basis — that is, for all policyholders in the same class — never as a targeted increase based on one individual's claims or health. This is the defining feature of the guaranteed-renewable clause type under the Ohio Revised Code framework that the Ohio Department of Insurance tests. The insured's deteriorating health or claims history cannot be used either to refuse renewal or to single out that person for a rate increase.

Why the other options are wrong

• A) Guaranteed renewable means the insurer cannot cancel at premium due dates; the insured holds the right to continue the coverage.
• B) A premium increase targeted at this policyholder because of his own claims is exactly what the class-wide limitation forbids.
• C) Declining renewal because health deteriorated violates the guaranteed renewal promise; renewal is the insured's right under the clause.

Memory hook

Guaranteed renewal, class-wide price changes only.