Which disability policy provision allows an insurer to adjust policy benefits and rates if the insured changes to a more hazardous occupation?

The Change of Occupation provision is vital in disability insurance policies as it stipulates the insurer's ability to modify policy benefits and rates when the insured switches to a more hazardous occupation. This provision is designed to mitigate the insurer’s risk exposure, as higher-risk occupations typically correlate with a greater likelihood of disability claims. If an insured person decides to take on a job that is deemed more dangerous, the insurer can adjust the terms of coverage to reflect this increased risk level.

This adjustment ensures that the policy remains adequately aligned with the likelihood of a claim being filed based on the insured's current occupation. It maintains the financial integrity of the policy, helping both the insurer and the insured manage the risks associated with changing job responsibilities.