CMFAS HI Common Policy Provisions question: conditionally renewable Health Insurance policy

CMFAS HICommon Policy Provisions

A conditionally renewable Health Insurance policy differs from an optionally renewable one chiefly in that the conditions permitting the insurer to refuse renewal:

A May include a deterioration in the insured person's health or a heavy claims record
B Cannot relate to the insured's health, and commonly turn on age or employment status
C Are entirely at the insurer's discretion, exercisable on any policy anniversary
D Apply only in the policy's first year, after which renewal is guaranteed for life

Show the answer and explanation

Answer: B. Cannot relate to the insured's health, and commonly turn on age or employment status

In a conditionally renewable policy the insurer may decline renewal only under stated conditions that must not be related to the insured's health; age and employment status are common examples, and the insurer may also raise premiums.

Common mistake

The distinguishing point is that the non-renewal conditions are health-neutral — health cannot be a trigger.

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Original study material mapped to the public CMFAS HI syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.