What must occur for a new insurance policy's coverage to terminate?
Understand the Problem
The question is asking about the conditions that can lead to the termination of coverage under a new insurance policy. It presents multiple-choice options and requires identifying which scenario can lead to the termination.
Answer
Coverage terminates due to false info, cancellation request, policy term ending, or non-payment of premiums.
A new insurance policy's coverage terminates when the enrollee notices an error, deliberately provides false information, or requests cancellation. It can also happen at the end of a policy term or if premiums aren't paid.
Answer for screen readers
A new insurance policy's coverage terminates when the enrollee notices an error, deliberately provides false information, or requests cancellation. It can also happen at the end of a policy term or if premiums aren't paid.
More Information
Understanding the conditions for policy termination helps policyholders avoid unexpected loss of coverage and stay compliant with policy requirements.
Tips
A common mistake is not keeping track of premium payments, resulting in unintentional cancellation. Always keep records of payment dates.
Sources
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