Which party may cancel a policy without advance notice?

Which party may cancel a policy without advance notice?

• A. The insurer
• B. The insured
• C. Either party
• D. The underwriter

Answer: (B)

The person who holds the policy can end coverage on their own, at any time. This means the insured may cancel without advance notice by simply requesting cancellation and choosing the date it ends. The insurer typically must provide notice and have a valid reason if it wants to cancel, so cancellation by the insured is the one that can occur without prior warning. The underwriter isn’t the party initiating ordinary cancellations, and cancellation by either party would imply the insurer’s or insured’s action, but only the insured has the unilateral right to cancel without advance notice.

The person who holds the policy can end coverage on their own, at any time. This means the insured may cancel without advance notice by simply requesting cancellation and choosing the date it ends. The insurer typically must provide notice and have a valid reason if it wants to cancel, so cancellation by the insured is the one that can occur without prior warning. The underwriter isn’t the party initiating ordinary cancellations, and cancellation by either party would imply the insurer’s or insured’s action, but only the insured has the unilateral right to cancel without advance notice.