Hubert, the insured, changes to a more hazardous job than the one he had when he applied for his disability income policy. According to the policy's change of occupation provision, what will happen when the insurer learns of his job change?
A) The insurer will cancel the policy unless Hubert pays an additional premium to cover the higher risk.
B) There is nothing the insurer can do as long as Hubert pays the premiums for the policy.
C) Policy benefits will be reduced to the amount the premiums would have purchased if they were based on the more hazardous occupation.
D) A specified percentage of benefits penalty will be charged against any future benefit payments.
Answer: C) Policy benefits will be reduced to the amount the premiums would have purchased if they were based on the more hazardous occupation.
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