Ace the Nebraska Life & Health License Exam 2025 – Dive Into Your Insurance Future!

When Jack takes a new job that is less hazardous after obtaining health coverage, the insurer may choose to reduce the premium because the risk associated with insuring him has decreased. Health insurance premiums are often assessed based on factors including occupation, and a job that is less hazardous typically corresponds with a lower likelihood of health-related claims or medical expenses.

With Jack moving to a less dangerous position, the insurer recognizes a decrease in risk, which can justify a reduction in premium costs. Insurers regularly review their policies and consider changes in an insured individual’s risk profile, which can lead to adjustments in premium rates based on the new circumstances.

The other options would not align with typical insurance practices in this situation. Canceling the policy or limiting coverage options generally occurs in response to more significant issues, such as non-payment or fraudulent behavior, rather than changes in employment risk. Increasing the premium would be unlikely since a less hazardous job reduces the insurer's risk exposure, rather than increasing it.