An individual health policyholder in Massachusetts is diagnosed with a costly illness during the policy year. At renewal time, what does guaranteed renewability require of the carrier?

Why C is correct

Guaranteed renewability, which Massachusetts applies to the individual market in coordination with the guaranteed-issue and renewability framework of M.G.L. c. 176J (whose individual offerings mirror the small-group plans), obligates the carrier to continue renewing the policy and bars it from terminating coverage because the insured became sick or filed claims. The renewal decision cannot be hostage to the very risk the policy exists to cover — that is the distinction between guaranteed issue at purchase and guaranteed renewability at renewal.

Why the other options are wrong

• A) Profitability of the individual contract is not a lawful ground for nonrenewal; the Massachusetts renewability rules protect the insured once the illness strikes.
• B) Re-underwriting at renewal would defeat guaranteed renewability; the carrier renews without a fresh health screen under the M.G.L. c. 176J framework.
• D) Renewal cannot be made conditional on forced plan-switching; the obligation is to renew the insured's coverage, not to reshuffle it.

Memory hook

Issued once, renewed always — getting sick is never a lawful reason to be dropped.