What does a guaranteed renewable policy allow the insurer to do?

A guaranteed renewable policy is designed to provide the policyholder with the assurance that their coverage will not be canceled by the insurer as long as they continue to pay the premiums. However, one of the key aspects of these policies is that the insurer has the right to change the premiums at renewal. This means that while the insured can expect their policy to be renewed, the cost of premiums may be adjusted, reflecting factors such as changes in the health care environment, claims experience, or age of the insured.

In contrast, the other options do not accurately describe what a guaranteed renewable policy entails. The insurer cannot cancel the policy after a set period as long as the premiums are paid; cannot unilaterally change the benefits provided in the policy; and does not have the ability to alter the liabilities specified in the contract without consent. Thus, the correct understanding of a guaranteed renewable policy focuses on the potential for premium changes at renewal, while ensuring the continuity of coverage.