Oklahoma Life Producer Practice Exam

A renewable policy goes from ________ to ________.

1. term to term

2. term to perm

3. permit to temporary

4. level to renewable

The correct answer is: term to term

A renewable policy is specifically designed to allow for the renewal of coverage at the end of a specified term without needing to provide evidence of insurability. In this context, "term to term" correctly captures the essence of this process, indicating that a temporary insurance policy is renewed at the end of its term. This means that the policyholder can continue their coverage without needing to reapply or undergo a new underwriting process, as long as they continue to pay the premiums. The focus on "term" conveys that the policy has defined periods of coverage, and upon expiration, it can be renewed for another term under similar conditions. This renewal feature is a significant advantage for policyholders who wish to maintain their coverage as their circumstances change over time, without the risk of being denied coverage due to changes in health status. The other options do not accurately describe the nature of a renewable policy, making them less applicable in this context.