Question

The insurer has the right to examine the books and records under a commercial package policy for up to how many years after the policy expires?

A) Four.
B) Two.
C) One.
D) Three.

Answer 1

The insurer generally has the right to examine the insured's books and records for up to two years after the expiration of a commercial package policy. The correct answer is B).

Step-by-step explanation:

The question refers to the duration which an insurer can examine the books and records of the insured after the expiration of a commercial package policy. The correct answer is B) Two. Insurers generally reserve the right to audit the insured's books and records for up to two years after the policy period ends. This is to ensure that the premium charged for the policy period aligns with the actual exposure represented by the business activities during that time.