What is the main requirement for a health insurance policy to be considered "guaranteed renewable"?

For a health insurance policy to be classified as "guaranteed renewable," the primary requirement is that the insurer is obligated to renew the policy at the option of the policyholder. This means that as long as the policyholder continues to pay the premiums, the insurance company cannot cancel the coverage or refuse to renew it based on the health status of the insured. This provision provides consumers with a sense of security and stability, as they can maintain their coverage regardless of any changes in their health condition.

In contrast, reducing premiums annually, requiring proof of insurability each year, or limiting the number of times a policy can be renewed do not align with the core principle of guaranteed renewability. These aspects would impose additional barriers or restrictions on the policyholder that could undermine the assurance that the policy will remain in force as long as the premiums are paid. Thus, the essence of a guaranteed renewable policy lies in the insurer's commitment to uphold the policyholder's right to renew without extra conditions tied to health changes.