What happens to the benefits if an individual changes to a higher risk job without notifying the insurance company?

When an individual changes to a higher-risk job without notifying the insurance company, the correct outcome is that the insurer will pay only what the premium covers at the rates for that job. This is based on the principle of utmost good faith, which requires both the insured and the insurer to disclose all relevant information before a contract is finalized.

When an insured party changes jobs and takes on a role that presents a higher risk of injury or illness, this change may necessitate a reassessment of the premium based on the new occupation's risk profile. If the individual fails to inform the insurance company, and a claim arises, the insurer will determine the benefit based on the original premium paid, which was calculated based on the risk associated with the individual's prior job. Therefore, any claims made following the job change could be limited to the benefits that would apply to the lower-risk occupation.

The other possible results, such as full payment of benefits regardless of the job change or outright cancellation of the policy, do not align with industry practices related to undisclosed risk changes. Benefits being unchanged is also inaccurate, as the proper management of risk is fundamental in insurance contracts. Thus, option B accurately reflects the insurance provider's responsibility in adjusting payments according to the insured’s accurate disclosures