If premium payment is more than 30 days late, the insurer may cancel after how many days' notice?

If premium payment is more than 30 days late, the insurer may cancel after how many days' notice?

• A. 5 days
• B. 10 days
• C. 20 days
• D. 30 days

Answer: (B)

When a premium is not paid, insurers can cancel the policy after giving a short written notice, allowing the insured a brief window to pay and prevent cancellation. For nonpayment, the required notice is 10 days. So, even if the payment is more than 30 days late, the insurer may cancel after at least 10 days’ written notice. If the payment is made within that notice period, cancellation can be avoided; if not, coverage ends at the cancellation date.

When a premium is not paid, insurers can cancel the policy after giving a short written notice, allowing the insured a brief window to pay and prevent cancellation. For nonpayment, the required notice is 10 days. So, even if the payment is more than 30 days late, the insurer may cancel after at least 10 days’ written notice. If the payment is made within that notice period, cancellation can be avoided; if not, coverage ends at the cancellation date.