I am confused a bit by PAP cancellation. I was under the impression that the insurer can only cancel for one of three reasons, but when getting to the policy cancellation portion of licensing in unit 3 lesson 3, it says that the insurer can cancel at any time including the first 60 days, for any reason other than discrimination. Anyone care to clarify this for me? Please and thank you.
Hi Robert,
After the first 60 days there are three reasons for cancellation:
1. non-payment
2. material misrepresentation or fraud
3. revocation of license or registration
FL Statute 627.728 states that during the first 60 days of the policy, the insurer can cancel for any reason except discrimination.
Jan