When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

The correct choice refers to the conversion provision, which is a feature commonly found in term life insurance policies. This provision allows a policyowner to convert their term policy into a permanent life insurance policy, such as whole life, without needing to provide evidence of insurability or good health at the time of conversion.

This is particularly beneficial because it protects individuals who may develop health issues during the term of their insurance. By exercising the conversion provision, the policyowner can secure life insurance coverage without the risk of being turned down due to health changes, thus the whole life policy can be acquired under the same terms as the original coverage despite any new health conditions.

In contrast, guaranteed acceptance typically refers to policies that do not require any health questions or medical exams but operates under specific guidelines and is usually associated with guaranteed issue life insurance rather than through a conversion from term to whole life. Premium adjustment and extended coverage do not directly apply to the conversion of a term to a whole life policy in this context, as these relate to other policy benefits or options rather than the straightforward exchange of one type of policy for another.