Which provision allows an insurer to adjust risks based on the occupation of the insured?

The Change of Occupation Provision is a key clause found in many health insurance policies that enables insurers to reassess the risk associated with an insured individual based on their occupation. When a policyholder changes their job to one that may carry a greater or lesser risk of injury or illness, this provision allows the insurer to revise the terms of the policy accordingly.

If the insured transitions to a more hazardous occupation, the insurance company may choose to increase premiums or limit coverage because the potential for claims is higher due to the nature of the new job. Conversely, if the insured moves to a safer occupation, premiums may be reduced or policy benefits improved. This flexibility in adjusting coverage based on occupational risk helps insurers maintain their financial stability while providing tailored coverage for individuals.

Other options listed do not inherently provide the same adaptability concerning occupational changes and the associated risks. The Disability Definition Provision relates to how disability is defined in the policy but does not focus on occupation-related risk changes. The Occupational Risk Clause and Risk Classification Provision may refer to aspects of how risks are classified or assessed, but they do not specifically address the changes in coverage that occur due to a change in occupation like the Change of Occupation Provision does.