West Virginia Adjusters Practice Exam

What is required from Dependable Insurance Services before ending Owen's policy for non-payment?

1. A phone call to Owen.

2. A written notice at least 10 days before cancellation.

3. A meeting with Owen.

4. A certified letter at least 5 days before cancellation.

The correct answer is: A phone call to Owen.

The correct requirement for ending Owen's policy for non-payment is a written notice at least 10 days before cancellation. Insurance companies are typically required to adhere to specific guidelines and state regulations when cancelling a policy, especially for non-payment. The written notice serves to inform the insured party of the impending cancellation and provides them with a clear timeframe to remedy the situation, such as making a payment or disputing the cancellation. In this case, the other options do not fulfill the legal requirements. A simple phone call may not provide sufficient documentation or legal notice. A meeting might be helpful for discussion, but it does not meet the formal notification requirements. Similarly, a certified letter with only 5 days notice does not meet the standard notice period that ensures the policyholder is adequately informed. Therefore, the appropriate action is to send a written notice that complies with state regulations, providing at least 10 days for the insured to address the non-payment issue.