Final answer:
The NAIC's change of occupation provision allows adjustments to premiums or coverage when an insured's occupation changes to one with a different risk level.
Step-by-step explanation:
The NAIC optional provision that comes into play if an insured has a change in their occupation is known as the change of occupation provision. This provision allows the insurance company to adjust the premium or benefits if the insured's new occupation presents a significantly different level of risk compared to the occupation specified when the policy was issued. For example, if an insured person who originally had a desk job becomes a construction worker, their job now carries higher risks, and the insurance provider may increase their premiums or alter the coverage to reflect this greater risk.