question y All of the following statements about the termination provisions of the PAP are true EXCEPT A The insured can cancel the policy for any reason. B The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days. C The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations. D The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to (D) the end of the policy period.

Question

question y All of the following statements about the termination provisions of the PAP are true EXCEPT A The insured can cancel the policy for any reason. B The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days. C The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations. D The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to (D) the end of the policy period.

Answer 1

The correct answer is C.Explanation:The termination provisions of the Personal Auto Policy (PAP) allow for the following:A. The insured can cancel the policy for any reason.B. The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days.D. The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to the end of the policy period.However, statement C is incorrect. The insurer can cancel the policy after it has been in force for 60 days, but it is not limited to only if the insured has three or more traffic violations. The insurer can cancel the policy for other reasons as well, such as non-payment of premiums or material misrepresentation on the application.

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