Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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

Guaranteed Renewable
Optionally Renewable
Noncancelable
Conditionally Renewable

The correct answer is: 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.