In a guaranteed renewable disability income contract, when can the insurance company change premiums?

In a guaranteed renewable disability income contract, the insurance company can change premiums only if the change applies to specific classes of insureds, rather than to individual policyholders. This means that if the insurer decides to raise premiums, it must do so universally across an entire class of insureds based on characteristics such as age, risk category, or other relevant factors.

This design ensures that the insured individuals have some level of predictability and protection regarding their premiums, as they know that the increase will not affect them alone but rather everyone in their class. Therefore, the insurance company cannot randomly change premiums for just one specific insured or based on unrelated factors.

In contrast, options that mention specific conditions such as the Consumer Price Index or changes in occupation do not directly dictate when premiums can be altered under this type of contract structure. The underlying principle of guaranteed renewal policies is to ensure equitable treatment across similar risk classes, thus maintaining stability for policyholders in their budgeting for insurance costs.