Ohio Insurance Laws and Regulations Practice Exam

For what reason may an insurer refuse to renew an employer's small group health plan?

1. Expansion of business

2. Nonpayment of premium

3. Change in business location

4. Improvement in employees' health

The correct answer is: Nonpayment of premium

An insurer may refuse to renew an employer's small group health plan due to nonpayment of premiums. This means that the employer has failed to pay the required monthly payments for the health plan and as a result, the insurance company will not continue providing coverage for the group. This is different than the other options, as they do not involve payment or financial reasons for the nonrenewal of the plan. Option A suggests that the employer is expanding their business, which would not typically be a valid reason for an insurer to refuse renewal. Option C mentions a change in business location, which is also not typically a valid reason for nonrenewal. Option D mentions an improvement in employees' health, but this would not typically be a reason for nonrenewal, as the purpose of insurance is to provide coverage for potential health needs of individuals.