Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?

The correct answer refers to a guaranteed renewable policy, which means that the insurer must continue to renew the policy as long as the premiums are paid on time. This type of policy guarantees that the coverage will remain in force until a specified age—in this case, 65 years old—regardless of the insured's health changes or their risk class status.

However, the insurer retains the right to increase the premium rates. This is a key characteristic of guaranteed renewable policies, as they are generally subject to premium changes based on the overall risk class rather than the individual circumstances of the insured. This ensures that policyholders can maintain their coverage without being denied renewal due to health-related issues while allowing the insurer to adjust premiums based on factors affecting all policyholders in that risk class.

Other options do not correctly describe the renewal characteristics. For instance, a conditionally renewable policy allows the insurer to refuse renewal under certain circumstances defined in the policy. Noncancelable policies, on the other hand, prohibit the insurer from cancelling the policy or changing premiums until a specified future date, regardless of risk class changes, which does not apply here. Lastly, a renewable until cancelled policy suggests that the policy can be renewed indefinitely at the choice of the insured until they decide to cancel it