West Virginia Adjusters Practice Exam

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Prepare for the West Virginia Adjusters Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

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Dependable Insurance Services wants to cancel Owen's policy because he has not paid his insurance premium. Which of the following is true?

Dependable Insurance can cancel the policy immediately without notice.
Dependable Insurance must notify Owen in writing at least 10 days before ending the policy.
Dependable Insurance must notify Owen in writing at least 30 days before ending the policy.
Dependable Insurance cannot cancel the policy for non-payment.

The correct answer is: Dependable Insurance can cancel the policy immediately without notice.

Dependable Insurance Services can cancel Owen's policy immediately without notice because he has not paid his insurance premium. This is the truth because non-payment of premium is considered a material breach of the insurance contract, giving the insurance company the right to terminate the policy without any prior notification. Options B and C are incorrect because they suggest that Dependable Insurance needs to provide written notice before cancelling the policy, which is not required in this situation. Option D is also incorrect because non-payment of premium is a valid reason for an insurance company to cancel a policy.