Asked by Mlebinge Endani on May 17, 2024
Verified
When a party with the power to terminate an insurance policy exercises that power,a(n) ________ has occurred.
A) lapse
B) cancellation
C) reformation
D) rescission
Terminate
Refers to the action of bringing something or an agreement to an end before its natural conclusion.
Cancellation
The act of crossing out a writing. The operation of destroying a written instrument.
Lapse
The termination or expiration of a legal right, policy, or agreement due to the passage of time or inaction.
- Pinpoint the scenarios that could result in the cancellation or alteration of an insurance arrangement and comprehend the privileges and liabilities of the stakeholders in such cases.
Verified Answer
MZ
minghan zhangMay 22, 2024
Final Answer :
B
Explanation :
When a party with the power to terminate an insurance policy (extinguish all rights under the policy)exercises that power,cancellation has occurred.
Learning Objectives
- Pinpoint the scenarios that could result in the cancellation or alteration of an insurance arrangement and comprehend the privileges and liabilities of the stakeholders in such cases.
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