Ace California Life & Health Insurance Exam 2026 – Burst Into Your Bright Insurance Future!

Question: 1 / 400

What is a typical characteristic of a guaranteed renewable insurance policy?

The insurer can refuse renewal after the initial term

The policy remains in effect as long as premiums are paid

A guaranteed renewable insurance policy is designed to provide coverage for the insured as long as they pay their premiums on time. This type of policy guarantees that the insurer cannot cancel the policy nor refuse renewal, which is a key characteristic that protects the policyholder. Therefore, as long as the premiums are paid, the coverage remains in effect regardless of changes in the insured's health status or other factors that might typically influence insurability.

This feature is particularly important for maintaining ongoing coverage and ensuring that individuals can continue to receive benefits when they might need them most. It contrasts with other types of policies where the insurer has more discretion over renewal terms or the ability to cancel coverage altogether.

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The benefits decrease over time

Coverage can be cancelled at will by the insurer

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