A Guaranteed Renewable provision allows premiums which can only be increased per rate class.

• A. Premiums which can be increased at renewal for any reason
• B. Premiums that vary by medical underwriting
• C. Premiums are fixed for life
• D. Premiums which can only be increased per rate class

Answer: (D)

Guaranteed Renewable means the insurer must renew your policy and can only adjust your premium when there is a change in the rate class, typically at renewal. This keeps you from being canceled or singled out for a rate hike due to new health issues; instead, any premium change applies to the whole rate class, not to your individual underwriting. So the statement that premiums can only be increased per rate class fits exactly: increases are tied to changes in the class (like moving to a higher age/band or a revised rate schedule) at renewal, not to arbitrary reasons or new medical information about you alone.

Other options don’t fit because one suggests increases can happen for any renewal reason, which isn’t allowed under guaranteed renewability; another suggests premiums vary with medical underwriting after the policy is issued, which guaranteed renewable avoids; and the idea of premiums fixed for life describes a noncancellable, level premium, not guaranteed renewable.