All of the following are DISADVANTAGES of replacing an older health policy EXCEPT

Replacing an older health insurance policy involves terminating an existing policy and purchasing a new one, which can have disadvantages such as proving insurability (new underwriting), a new contestability period (typically 2 years for misstatements), and potential exclusions for preexisting conditions under the new policy, as regulated in Oklahoma (O.A.C. 365:10-3-16). However, if the old policy no longer meets the policyowner’s needs, replacing it is an advantage, not a disadvantage.

Option A: Incorrect (is a disadvantage). Proving insurability may result in higher premiums or denial.

Option B: Incorrect (is a disadvantage). A new contestability period restarts the insurer’s ability to contest claims.

Option C: Incorrect (is a disadvantage). Preexisting conditions may face new exclusions or waiting periods.

Option D: Correct (is not a disadvantage). Replacing a policy that doesn’t meet needs is a benefit of replacement.

This question aligns with the Prometric content outline under “Considerations in Replacing Insurance,” which covers the implications of policy replacement.