Florida Life and Health Insurance License Practice Test 2025 - Free Insurance Practice Questions and Study Guide

Question: 1 / 400

What type of Disability Income Policy can only be terminated by the policyowner, with rates that will never increase?

Guaranteed Renewable

Optionally Renewable

Noncancelable

Noncancelable disability income policies are the only type of policies that can only be terminated by the policyowner and have guaranteed rates that will never increase. Guaranteed renewable policies allow the insurer to increase rates for the entire policy class, while optionally renewable policies give the option to both the insurer and policyowner to terminate the policy. Conditionally renewable policies allow the insurer to terminate the policy if there is a specific condition met, such as the policyowner reaching a certain age. Therefore, C is the only correct answer.

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Conditionally Renewable

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