When an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium the insurer must meet all of the following requirements except?
Asked by: Martine Kohler | Last update: November 4, 2022Score: 4.1/5 (75 votes)
When an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium, the insurer must meet all of the following requirements EXCEPT... Offer the insured to renew the policy at a different rate.
When an auto insurance policy is Cancelled for nonpayment of premium how many days notice must the insurer provide to the policyowner quizlet?
Notice of policy cancellation may be effective only if mailed or delivered by the insurer to the policyowner at least 20 days prior to the effective date of cancellation, or 10 days' notice when cancellation is for nonpayment of premium, accompanied by the reason for cancellation.
When an auto insurance policy is canceled for nonpayment of premium how many days notice must the insurer provide to the policyowner?
In most states, an insurance company must give a policyholder written notice of cancellation at least 30 days before canceling the policy.
What type of policy only establishes the value of an insured object when a loss occurs quizlet?
What type of policy only establishes the value of an insured object when a loss occurs? In property and casualty insurance, insurable interest is defined as the right of a person or entity to property in that such a loss to that property would cause a direct monetary loss to the person or entity.
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? Liability coverage.
Requirements for Cancelling an Insurance Contract
Which of the following uses of a vehicle is not excluded under the medical payments coverage?
Which of the following uses of a vehicle is not excluded under the Medical Payments coverage? A Bodily injury sustained by an insured isn't covered if the insured is using a vehicle while engaged in business.
Which of the following is true regarding renewability of a low cost auto insurance policy in California?
Which of the following is true regarding renewability of a low cost auto insurance policy in California? It must be renewed annually.
What type of insurance policy insures against all risk of loss that are not specifically excluded by the policy?
Open Perils — refers to property insurance that insures against loss to covered property from all causes except those that are specifically excluded. This method of identifying covered causes of loss in a property policy has traditionally been referred to as "all risks" coverage.
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred?
The principle of indemnity stipulates that the insured can only collect for the amount of the loss even if the policy is written with greater benefit limits.
What are the two types of compensatory damages in insurance quizlet?
The two types of compensatory damages that can arise out of an injury are special damages and general damages. Special damages are awarded to an injured party for tangible losses.
When an auto insurance policy is Cancelled for nonpayment of premium?
If your insurance premium went unpaid long enough for your coverage to be canceled, you'll have to apply for a new policy. Unfortunately, your rates will likely increase, as car insurance companies charge more for drivers who have had their insurance terminated due to missed payments.
What happens if insurance cancel your policy?
But if your insurer cancels your policy, it means they think you did something to break the rules. And when you try to buy car insurance in the future, this won't look good to insurers. You won't have to pay any fees if your insurer cancels your policy, but you won't get a refund either.
When can an insurer cancel a policy?
In general, insurance companies can cancel your policy for any reason during the first 60 days the policy is active. However, they don't typically cancel policies for no reason. It's usually because the risk you present to the insurer has changed since you applied.
Can an insurer cancel a property policy for nonpayment of premium quizlet?
The insurer can cancel for nonpayment of premium. The insurer can cancel if the driver's license of the named insured, a family member, or any driver that customarily uses the covered auto has been suspended or revoked.
What notice is required when an auto liability insurance policy is terminated quizlet?
In order to be valid, cancellation and nonrenewal notices issued under motor vehicle liability insurance policies must: provide at least 15 days advance notice if the policy is being cancelled or nonrenewed for nonpayment of premium, and at least 45 days advance written notice for all other reasons.
What is a risk retention group insurance?
Issue: Risk Retention Groups (RRGs) are liability insurance companies owned by its members. RRGs allow businesses with similar insurance needs to pool their risks and form an insurance company that they operate under state regulated guidelines.
What is principle of proximate cause?
The term proximate cause refers to the nearest cause leading to the loss. It is the direct cause of a loss event. The principle of proximate cause is the cause that is primary to the occurred event. It could also be the most significant incident which cascades into the loss event.
Which of the following provisions allows an insured or the insurer to terminate the policy?
The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid.
What are two types of compensatory damages?
There are two types of compensatory damages—general and actual. Actual damages are intended to provide funds to only replace what was lost. General compensatory damages awarded are more complex, as these compensatory damages do not represent a monetary expenditure.
What is an open peril in insurance?
Open perils coverage is a form of commercial property insurance that provides protection against nearly every type of loss except those specifically excluded in the policy. Open perils property insurance is different from named perils insurance, which only provides coverage for losses specifically listed in the policy.
What is the term for the Causes of Loss insured against in an insurance policy?
Perils are the causes of loss insured against in an insurance policy.
What is static risk?
Static risks are risks that involve losses brought about by acts of nature or by malicious and criminal acts by another person. These losses refer to damages or loss to property or entity that is not caused by the economy.
Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage?
Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage? Claims history; Claims history is often a reason for non-renewal of an automobile policy, but not for a mid-term cancellation.
What is a non cancelable policy?
A noncancellable insurance policy is a life or disability insurance policy that an insurance company can't cancel, increase the premiums on, or reduce the benefits of for as long as the customer pays the premiums.
Which of the following statements would be correct if an insured failed to maintain the underlying?
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? The insured would be responsible for the amount required as underlying limits in the event of a claim.