Personal Lines & Homeowners
Which reason lets a Texas company cancel a home policy in its FIRST 60 DAYS but is not one of the reasons TDI lists for cancelling at any time?
Answer
The company does not accept a copy of a required inspection report before the policy starts
TDI: a company may cancel in the first 60 days if 'it learns about a risk you didn't tell it about and that wasn't part of a previous claim' or 'it doesn't accept a copy of a required inspection report before the policy starts.' Nonpayment, a fraudulent claim, continuation that violates the law, and an increase in risk within the insured's control let the company cancel at any time.
Source: TDI, Home insurance guide (cb025)
Not the answer
- The policyholder files a fraudulent claim
- There is an increase in risk within the policyholder's control that would raise the premium
- The policyholder stops paying premiums
Practice this
The Texas All-Lines Adjuster exam is 150 questions with a scaled passing score of 70, which is neither the number nor the percentage correct. This test uses 70% as a yardstick. The app’s page carries a free ten-question test drawn from the same bank, marked as you go.
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