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!

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What type of renewability feature guarantees premium rates and the policy’s renewability?

Convertible
Optionally renewable
Conditionally renewable
Noncancellable

The correct answer is: Noncancellable

Noncancellable is the type of renewability feature that guarantees premium rates and the policy's renewability. This means that the premiums for this type of policy will remain the same throughout the life of the policy and the policyholder has the guaranteed right to renew it each year without the insurance company being able to cancel it. Option A, Convertible, allows the policyholder to convert their policy to a different type of policy, but this does not guarantee premium rates. Option B, Optionally renewable, means that the insurance company has the option to renew the policy, but they are not obligated to do so and can change the premium rates. Option C, Conditionally renewable, means that the insurance company will renew the policy as long as the policyholder meets certain conditions, but again, the premium rates are not guaranteed. Therefore, D, Noncancellable, is the correct answer.