What are "mistatement of age", "change of occupation", and "illegal occupation" examples of?

The terms "misstatement of age," "change of occupation," and "illegal occupation" are examples of optional provisions in health insurance policies. Optional provisions refer to specific clauses that allow the insurer to adjust the terms of the policy based on certain actions or facts related to the insured.

For instance, if a policyholder misstates their age, this can result in changes to premiums or benefits, reflecting the fact that age directly affects the risk assessment for insurance. Similarly, if a policyholder changes their occupation, this may also alter the risk profile and could lead to adjustments in coverage or costs. Lastly, illegal occupation indicates that if an individual is engaged in an activity or job that is considered illegal, the insurer may limit or deny coverage due to the increased risk associated with such pursuits.

While basic provisions cover essential aspects of the policy, optional provisions specifically tailor the contract to address unique situations like those described, thus providing flexibility for the insurer in managing risk. Guaranteed renewability pertains to the right to renew a policy under specified conditions, and dividends refer to shares of earnings that may be paid to policyholders in mutual insurance companies.