What option does an insurer have with Optionally Renewable Health policies?

In the context of optionally renewable health policies, the option for the insurer to review the policy annually and decide whether to renew it is aligned with the definition and characteristics of this type of policy. With optionally renewable policies, the insurer has the discretion to assess the risk associated with the policyholder and choose whether to continue coverage on an annual basis. This provision gives insurers flexibility in their underwriting process and allows them to make decisions based on the policyholder's claims history, overall health, or any changes in risk factors.

This means that, while the insurer cannot cancel the policy outright without cause, they can choose not to renew it after the policy term ends if they find that continued coverage is not warranted. The selectively renewable nature does not obligate the insurer to renew, unlike policies that must be renewed regardless of circumstances, which affords consumers certain protections.

Thus, the insurer's ability to review and decide on renewal each year encapsulates the unique aspect of optionally renewable health insurance policies, where the balance of risk assessment lies with the insurer.