Answered

Which of the following statements is CORRECT about a Renewable Term policy?

A. The insured must provide evidence of insurability only on the first renewal.
B. The insured may increase the face amount on subsequent renewals without providing evidence.
C. The renewal premium is calculated on the basis of the insured's attained age.
D. The policy is renewable only until the insured retires.



Answer :

GinnyAnswer

Final answer:

A Renewable Term policy requires evidence of insurability only on the first renewal and the renewal premium is based on attained age. Increasing the face amount on subsequent renewals may require additional evidence.


Explanation:

The correct statement about a Renewable Term policy is:

  1. The insured must provide evidence of insurability only on the first renewal.
  2. The renewal premium is calculated on the basis of the insured's attained age.

However, the incorrect statement is: The insured may increase the face amount on subsequent renewals without providing any evidence of insurability.


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