New York State Life Insurance Exam Questions Practice Question
An insured has a 5-year Renewable Term Life Insurance Policy. Upon exercising the renewable privilege, the insured MUST
Correct Answer: C
Rationale: In a 5-year Renewable Term Life Insurance Policy, exercising the renewal privilege allows the insured to extend coverage without needing to provide evidence of insurability, making option A incorrect. There is no requirement to renew for a specific duration, so option B is also wrong. While the premium may increase upon renewal, which aligns with option C, there is no mandate to convert to a whole life policy, making option D incorrect. Therefore, the insured must pay an annual premium that may be higher when renewing the policy.
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