Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to decline renewal of the policy for

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Multiple Choice

Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to decline renewal of the policy for

Explanation:
Conditionally renewable means the insurer can decline to renew only for specific reasons that are written into the policy. Those grounds are the exact conditions listed in the contract (for example, nonpayment of premium, misrepresentation, or other stated circumstances). Because the reasons are pre-defined in the policy, the insurer cannot refuse renewal for reasons not described there. That’s why the correct statement is that renewal can be declined for reasons stated in the contract.

Conditionally renewable means the insurer can decline to renew only for specific reasons that are written into the policy. Those grounds are the exact conditions listed in the contract (for example, nonpayment of premium, misrepresentation, or other stated circumstances). Because the reasons are pre-defined in the policy, the insurer cannot refuse renewal for reasons not described there. That’s why the correct statement is that renewal can be declined for reasons stated in the contract.

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