Question

Jim receives a letter in the mail from his insurer notifying him that his commercial policy will not be renewed thirty days from now. Jim protests, saying he needs at least two months time to find a new policy. Jim ends up receiving an additional 30 days' coverage at the same premium as before, because:

A. Jim prepays his insurance two months at a time.
B. Jim's insurer did not notify him by phone.
C. Jim is an exceptional negotiator.
D. Jim's insurer did not provide him with 45 days' notice.
D. Jim's insurer did not provide him with 45 days' notice.

Answer 1

The correct answer is D. Jim's insurer did not provide him with 45 days' notice.

Step-by-step explanation:

The correct answer is D. Jim's insurer did not provide him with 45 days' notice.

When an insurer decides not to renew a policy, they are typically required to provide the policyholder with a certain amount of notice. In this case, Jim's insurer only provided him with 30 days' notice, which is less than the required 45 days. As a result, Jim is entitled to an additional 30 days' coverage at the same premium as before.