a. along with a decrease in premium

Insurance premiums are influenced by a multitude of factors including the insured’s age, health status, and the insurer’s underwriting policies.

The renewal premium is not predetermined to decrease. It can be affected by various variables including the insured’s health, age, and any changes in the insurer’s pricing structure. Therefore, a decrease in premium is not guaranteed.

If the insured’s health deteriorates or they age significantly, the premium could potentially increase. A Renewability provision doesn’t inherently imply a decrease in premiums, and any changes in premium would be subject to a variety of factors.

b. “at the option of the insurer”:

This statement is fundamentally contrary to the purpose and function of a Renewability provision. A Renewability provision is specifically designed to protect the policyholder’s interests, ensuring they have the right to renew the policy at their discretion.

It is a safeguard for the policyholder against any adverse changes in their health or life circumstances.

If a policy contains a Renewability provision, the insurer is obligated to honor this provision and renew the policy upon the policyholder’s request, as long as any administrative requirements (such as paying the premium) are met.

c. “only with evidence of insurability”:

This statement directly contradicts the primary benefit of having a Renewability provision. The inclusion of a Renewability provision means that the policyholder can renew the policy without having to provide evidence of their insurability.

This provision is intended to offer continued coverage even if the policyholder’s health status has changed since the policy’s inception. Requiring evidence of insurability would defeat the very purpose of a Renewability provision, which is to provide a seamless option for policyholders to maintain coverage.

In essence, the Renewability provision is a crucial aspect of an insurance policy, designed to grant the policyholder the option to renew the policy without the need for further evidence of insurability. This ensures that policyholders can maintain coverage even if their health or life circumstances have changed since the initiation of the policy.

It is vital to understand that this provision obligates the insurer to renew the policy upon the policyholder’s request, provided they meet any necessary administrative requirements, such as premium payments. Therefore, the incorrect options do not align with the purpose and function of a Renewability provision.