Which of the following is NOT a potential consequence of a material misrepresentation?

Guaranteed renewal of a policy is not a consequence of a material misrepresentation because it pertains to the rights and options provided to the policyholder under the terms of the policy. When a policy includes a guaranteed renewal provision, it ensures that the insured can renew the policy without any changes based on their health status or other factors, regardless of any past misrepresentations that might have taken place during the application process.

In contrast, the other consequences listed—policy termination, increased premiums, and claims denial—are all possible outcomes of a material misrepresentation. If an applicant provides false information that is deemed significant to the underwriting process, the insurer may choose to terminate the policy, adjust the premiums to reflect the true risk presented, or deny a claim based on the misrepresentation. These actions reflect the insurer's right to evaluate risk accurately and manage their exposure accordingly. The guaranteed renewal clause, however, specifically protects policyholders from such adverse actions based on misrepresentations, reflecting their right to maintain coverage as initially agreed.