Florida Insurance Claims Adjuster License Practice Exam

Under what condition can an insured cancel their coverage?

1. Only with advance notice

2. At any time, for any reason, without advance notice

3. After a claim has been paid

4. Upon mutual agreement with the insurer

The correct answer is: At any time, for any reason, without advance notice

An insured is able to cancel their coverage at any time, for any reason, without advance notice. This is because they have the right to terminate the insurance contract at any point. Option A is incorrect because advance notice is not always required, the insured can cancel without it. Option C is incorrect because the insured can cancel their coverage regardless of whether or not a claim has been paid. Option D is incorrect because the insured does not need mutual agreement with the insurer to cancel their coverage.