Question

The insured and the insurer can both cancel a policy as long as it doesn't break any laws?

1) True
2) False

Answer 1

Both the insurer and the insured have the right to cancel an insurance policy if the statement is true. (option 1)

Step-by-step explanation:

The insurers and insureds can cancel a policy as long as it doesn't break any laws. The statement is True. Both parties have the right to cancel an insurance policy. The insured can cancel their policy at any time, though they may face penalties such as fees or the forfeit of any prepaid premiums. The insurer also has the right to cancel the policy under specific circumstances that are typically outlined in the policy terms, such as non-payment of premiums, fraud, or increased risk. However, both parties must adhere to any relevant laws and regulations, as well as the contractual terms outlined in the policy agreements. It's also common for a cancellation to require a written notice and to follow a notice period as specified by the contract or regulated by law.