Florida Insurance Claims Adjuster License Practice Exam

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What is required if an insurance company wishes to cancel a policy?

  1. An act of God

  2. Approval from a court

  3. A significant breach of policy by the insured

  4. Advance notice

The correct answer is: Advance notice

In order to cancel a policy, an insurance company is required to provide advance notice to the policyholder. Option A, an act of God, is a circumstance beyond human control and is not related to the cancellation of a policy. Option B, approval from a court, would only be necessary in certain legal situations, but is not a general requirement for policy cancellation. Option C, a significant breach of policy by the insured, may give cause for cancellation, but it is not the only requirement. Therefore, option D, advance notice, is the most accurate and comprehensive answer as it addresses the necessary action for policy cancellation.

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