New Jersey Life Producer Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

When a policyowner requests the renewal of a renewable term policy, the insurer must renew the policy regardless of insurability. This is a key feature of renewable term insurance, which is specifically designed to allow policyholders to extend their coverage without undergoing a new underwriting process. The renewal option ensures that individuals can maintain their life insurance protection, even if their health has declined since the original policy was issued.

This characteristic is particularly beneficial for policyholders as it provides a sense of security and continuity in coverage without the risk of being denied due to changes in health status. While insurers may adjust premium rates upon renewal based on the insured's age or market factors, they cannot deny renewal based on health-related issues. This principle aligns with the purpose of renewable term policies, which aim to protect the insured's interests over the long term.