Which of the Following Is False in Regard to an Insurer's

question 4

Multiple Choice

Which of the following is false in regard to an insurer's right to cancel a policy of insurance?

• A) An insurer who rightfully cancels a policy is not required to a refund of premium payments covering future time periods.
• B) Typically a grace period is required before a policy may be cancelled.
• C) State statutes usually govern the circumstances under which an insurer may cancel a policy.
• D) If an insured fails to pay premiums after a certain period, the insurance company may cancel.
• E) Car insurance may be canceled if the insured loses her license because of a driving violation.

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Definitions:

Stable Environments

Contexts or settings characterized by predictability and consistent conditions, beneficial for strategic planning and business operations.

Rapid Growth

A significant increase in a company's revenue, size, or market share in a short period, often seen in start-up ecosystems.

Venture

A business venture refers to a new enterprise or initiative that involves some level of risk, aiming for growth and profit.

Failure Rates

The percentage of businesses or projects that do not succeed, often used as a metric to assess risk or the effectiveness of strategies.