Arkansas Insurance Adjuster Practice Exam

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Steadfast Insurance must notify Orion by what method before ending the policy due to misrepresentation?

  1. At least 20 days before ending the policy

  2. By paying an extra month's premium for an extra 30 days coverage

  3. By mail at least 30 days before ending the policy

  4. May deliver its notice of cancellation in person or by mail, email, or phone

The correct answer is: May deliver its notice of cancellation in person or by mail, email, or phone

Steadfast Insurance must notify Orion using any of the available methods (in person, mail, email, or phone) before ending the policy due to misrepresentation. Options A, B, and C are incorrect because they specify a time frame for notification, but do not mention the method of notification. Option D is the correct answer because it not only mentions the method, but also provides multiple options for notification. Additionally, option B is not applicable in this situation because it suggests paying extra premium for extended coverage, which is not relevant to the question at hand.

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