Which statement best describes guaranteed renewable versus noncancelable policies?

Which statement best describes guaranteed renewable versus noncancelable policies?

• A. Guaranteed renewable means the insurer must renew; noncancelable cannot be canceled and rates cannot be increased while in force.
• B. Guaranteed renewable means premiums cannot be increased; noncancelable means the policy can be canceled at any time.
• C. Guaranteed renewable means the policy terms cannot be changed by the insurer after issue.
• D. Noncancelable policies are always less favorable to the insured.

Answer: (A)