Under what condition is an insurer allowed to provide only 5 days notice of cancellation, instead of the usual 30 days?

The correct condition under which an insurer may provide only 5 days' notice of cancellation, instead of the usual 30 days, is when there is a suspicion of fraudulent activity. Insurers are allowed to expedite the cancellation process in cases where they have reason to believe that the insured has engaged in fraudulent behavior, as this poses a significant risk to the insurer.

In instances of fraud, such as misrepresenting information during the underwriting process or submitting false claims, the insurer acts swiftly to protect its interests and minimize potential loss. This urgency justifies the reduction in notice period since ongoing fraud can lead to further claims and financial consequences for the insurer.

The other conditions specified, such as the discovery of a structural flaw, late premium payments, or the insured moving out of state, typically do not warrant such an expedited cancellation notice. They generally adhere to the standard notice requirements set forth in insurance policies to ensure that the insured has adequate time to rectify the situation or seek alternative coverage.