Health · Chapter 18 · Optional Provisions
Change of Occupation
Definition
Optional provision adjusting the policy when the insured switches jobs without telling the insurer: more hazardous occupation → benefits reduced proportionately, premium unchanged; less hazardous occupation → premium reduced and excess unearned premium returned, benefits unchanged.
In plain English
The company rebalances the deal to match the new risk — it never just cancels you for changing jobs.
Exam tip
⚠️ Trap: more dangerous job → the BENEFIT drops (premium stays); safer job → the PREMIUM drops (benefit stays). Only one lever moves at a time.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms