What type of policy allows the insurer to raise premiums only on a class basis, but not cancel the policy?

A guaranteed renewable policy is designed to provide policyholders with the assurance that their coverage can be renewed each term without the insurer being able to cancel the policy as long as premiums are paid. However, the insurer retains the right to raise premiums, but this increase can only occur on a class basis rather than for individual policyholders. This means that the premium hikes apply to a group of similar policies and not just an isolated case; thus, it prevents discriminatory practices based on a single policyholder's claims or situation.

In contrast, a noncancelable policy guarantees the premium will remain unchanged throughout the life of the policy, but the insurer cannot cancel the coverage. Term insurance typically provides coverage for a specified period and can cover varying conditions but does not guarantee renewability in the same way. Whole life insurance is designed to provide lifetime coverage and builds cash value but does not inherently provide the same premium flexibility as guaranteed renewable policies.