An individual covered under a disability income policy is injured while engaged in an occupation that is more hazardous than the occupation stated in the policy. What is the effect of the policy's change of occupation provision?

While it's possible that the premium rate could be reevaluated based on the new occupation, the change of occupation provision primarily addresses the benefits rather than altering the premium directly. In most cases, the policy does not automatically increase premiums due to the change in occupation, focusing instead on benefit adjustments.

Increasing policy limits in response to a more hazardous occupation is counterintuitive and unlikely. Insurers typically lower benefits to mitigate their risk rather than increase them, as elevated risk would not justify higher coverage limits under the same terms.

Cancellation of the policy is not a standard outcome of a change of occupation provision. Instead, the policy remains in force with adjusted benefits due to the increased risk associated with the new occupation. Cancellation would typically require more severe circumstances or breaches of policy terms.