Your client wants to terminate their insurance policy. What is an incorrect provision related to this process?

In the context of terminating an insurance policy, it is important to understand that the insured is entitled to certain rights and provisions. The assertion that the insured is entitled to a premium refund upon termination is often not accurate without specific conditions being met. In many cases, a premium refund is only applicable if the policy has been prepaid or if the cancellation occurs within a certain timeframe, such as during a free-look period. Therefore, while it may be possible for the insured to receive a refund, it is not a guaranteed provision upon termination of the policy.

On the other hand, all other mentioned provisions are generally correct within the context of most insurance agreements. Insurers typically require written confirmation of the termination for clarity and legal record-keeping. Additionally, the responsibility for reporting termination often lies with the insured, and many policies grant the insured the right to cancel at any time, usually without needing to provide a reason, reinforcing their flexibility in managing their insurance coverage.