State RegulationsOH specificDifficulty 1/5
What does 'renewable at the option of the insurer' mean in an individual A&H policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A policy renewable at the option of the insurer gives the insurer — not the insured — the decision whether to continue coverage at each renewal, typically up to a stated age or date. Among the renewability clause types under the Ohio Revised Code framework tested by the Ohio Department of Insurance, this is one of the least protective for the insured, because continuation depends entirely on the insurer's choice. The insured has no guaranteed right to keep the coverage beyond the current term.
Why the other options are wrong
- A) Under this clause type the renewal decision belongs to the insurer; the insured does not control continuation.
- C) Nothing in an insurer-option renewal clause fixes the premium; the rate is not the issue, the renewal decision itself is.
- D) Automatic renewal describes a different structure; here the insurer must affirmatively elect to renew, and may decline.
Memory hook
Insurer's option = insurer's call whether you stay.