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:

Concerned

A state of being worried or anxious about something.

Contractual Obligations

Legal agreements and duties that parties must fulfill as part of a contract, often enforceable by law.

Individual

pertains to a single human being as distinct from a group, class, or family.

Organization

A structured group of individuals working together towards shared goals or objectives, often formalized through roles and hierarchies.