Florida Insurance Claims Adjuster License Practice Exam

How many days should an insurer give for prior notice of cancellation of a binder?

1. 5 days

2. 10 days

3. 15 days

4. 30 days

The correct answer is: 5 days

An insurer is required to provide a minimum of 5 days prior notice of cancellation of a binder. This is a relatively short time frame compared to the other options, as it allows the insured enough time to make other arrangements for insurance coverage. Options B, C, and D are incorrect because they exceed the minimum requirement and may cause financial inconvenience to the insured if they have already paid for a longer term of coverage. Additionally, a longer notice period may give the insured false security and delay their search for alternative insurance options. Therefore, A (5 days) is the appropriate and sufficient amount of time for an insurer to provide prior notice of cancellation of a binder.