Requirements for Cancelling an Insurance Contract

The video tutorial discusses the cancellation of insurance contracts from both the insured and insurer perspectives. It explains that the insured can cancel at any time, while insurers have specific conditions under which they can cancel, such as non-payment of premiums or misrepresentation. The video also covers the importance of statutory notice and conditions in insurance contracts, and how policies can be terminated at the end of their term.

What is one of the main rights of the insured regarding their insurance contract?

• They can demand a refund of all premiums paid.

• They can change the terms of the contract at any time.

• They can cancel the contract at any time.

• They can increase the coverage without additional cost.

Under what condition can an insurer cancel an insurance policy unilaterally?

• If the insured files a claim.

• If the insured requests a change in coverage.

• If the insured fails to pay premiums.

• If the insured moves to a different state.

What is considered fraud in the context of insurance contracts?

• Accidentally providing incorrect information.

• Intentionally providing false information to obtain coverage.

• Changing the policy terms without notice.

• Requesting a higher coverage limit.

What is a condition subsequent in an insurance policy?

• A condition that must be met before the policy starts.

• A condition that, if met, voids the policy.

• A condition that extends the policy term.

• A condition that allows for premium reduction.

What must an insurer provide to validly terminate a policy at the end of its term?

• A refund of all premiums paid.

• Statutory notice and required disclosures.

• A new policy offer.

• A list of alternative insurers.