Which of the Following Statements Is True About Cancellation of an Insurance

question 31

Multiple Choice

Which of the following statements is true about cancellation of an insurance policy?

• A) Insurers can cancel insurance contracts by surrendering the policy to the insured.
• B) Insurance contracts contain a reinstatement clause that allows an insured to reinstate a cancelled policy.
• C) Insureds who terminate a contract are entitled to a return of the premium on a short-rate basis.
• D) Insurers that cancel a contract need not return the unearned portion of any premiums paid by the insured.

---

Definitions:

Measure of Variability

A statistical indicator that describes the degree to which scores in a dataset are spread out or dispersed.

Inclusive Range

A measure of variability calculated by subtracting the lowest score in a distribution from the highest score in the distribution and adding 1.

Variables

Elements, features, or factors that can change or vary in an experiment or study, potentially influencing the outcome.

Types of Variables

Categories of variables in research, including independent, dependent, and control variables, among others.