Common use of Plan Renewal Clause in Contracts

Plan Renewal. This contract is guaranteed renewable. Guaranteed renewable means that this contract will renew each year on the anniversary date unless terminated earlier in accordance with contract terms. You may keep this contract in force by timely payment of the required premiums. We may decide not to renew as of the renewal date if: (1) we decide not to renew all contracts issued on this form, with the same type and level of benefits, to residents of the state where you then live; or (2) there is fraud or an intentional material misrepresentation made by or with the knowledge of a member in filing a claim for contract benefits. Rate changes are effective on a member’s annual renewal date and will be based on each member’s attained age, family structure, geographic region, tobacco usage and benefit plan at the time of renewal. We will notify the member in writing at least thirty (30) days prior to the renewal date of any change in premium rates. For members who have elected the electronic funds transfer option of payment, should premiums change at renewal, we will continue to draft the new monthly premium. Term of Renewal We guarantee the member the right to renew the contract each year, at the member’s option. However, we may refuse to renew this contract, and all coverage provided under this contract, if one of the following circumstances has occurred:

Plan Renewal. This contract is guaranteed renewable. Guaranteed renewable means that this contract will renew each year on the anniversary date unless terminated earlier in accordance with contract terms. You may keep this contract in force by timely payment of the required premiums. We may decide not to renew as of the renewal date if: (1) we decide not to renew all contracts issued on this form, with the same type and level of benefits, to residents of the state where you then live; or (2) there is fraud or an intentional material misrepresentation made by or with the knowledge of a member in filing a claim for contract benefits. Rate changes are effective on a member’s annual renewal date and will be based on each member’s attained age, family structure, geographic region, tobacco usage and benefit plan at the time of renewal. We will notify the member in writing at least thirty forty-five (3045) days prior to the renewal date of any change in premium rates. For members who have elected the electronic funds transfer option of payment, should premiums change at renewal, we will continue to draft the new monthly premium. Term of Renewal We guarantee the member the right to renew the contract each year, at the member’s option. However, we may refuse to renew this contract, and all coverage provided under this contract, if one of the following circumstances has occurred: