An insured whose policy has been in effect for more than 60 days received a notice from his insurer that his policy would be cancelled for nonpayment of premium. What must this notice also include?

Prepare for the North Dakota Property Exam. Study with flashcards and multiple choice questions, each question has detailed explanations. Ace your exam with our resources!

The correct answer is that the notice must include the amount of premium due. In North Dakota, when an insurer notifies an insured about the cancellation of a policy for nonpayment of premium, the insurer is required to specify the financial obligation that has not been met. This detail is crucial for the insured to understand exactly what is owed to prevent further issues with their coverage. Clear communication of the amount due helps the insured take the necessary steps to remedy the situation, which may include making the payment to avoid cancellation.

While the other options relate to important information that could be beneficial to the insured, the specific requirement here is to include the financial aspect - the amount of premium that remains unpaid. This ensures that the insured has a clear understanding of their financial obligation directly linked to the policy's potential cancellation.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy