The Statutory Condition concerning Termination does NOT state

The Statutory Condition concerning Termination does NOT state

• A. Who may terminate the policy
• B. How much notice must be given
• C. The actual amount of premium to be refunded
• D. How the notice must be given

Answer: (C)

Termination provisions focus on how coverage ends, not on the money side of the deal. They cover who may terminate the policy, how much notice is required, and the manner in which the notice must be given. They don’t fix the exact amount of premium that will be refunded when termination occurs. That refund is determined by unearned premium rules (often prorated for the unused period) and any cancellation terms, which are handled outside the termination clause. So stating the exact refund amount is not something the termination provision specifies.

Termination provisions focus on how coverage ends, not on the money side of the deal. They cover who may terminate the policy, how much notice is required, and the manner in which the notice must be given. They don’t fix the exact amount of premium that will be refunded when termination occurs. That refund is determined by unearned premium rules (often prorated for the unused period) and any cancellation terms, which are handled outside the termination clause. So stating the exact refund amount is not something the termination provision specifies.