Illinois Casualty Insurance State Practice Exam

What is the required notice period for cancellation of auto policies within the first 60 days for reasons other than nonpayment of premiums?

1. 15 days notice

2. 30 days notice

3. 45 days notice

4. 60 days notice

The correct answer is: 30 days notice

The required notice period for cancellation of auto policies within the first 60 days for reasons other than nonpayment of premiums is 30 days. This rule is established by state regulations to provide policyholders with a fair opportunity to rectify situations that may lead to cancellation, such as misrepresentation or changes in risk. The 30-day notice period allows consumers adequate time to seek alternative coverage and to address any potential issues with their current policy, thereby offering a degree of consumer protection during the early phase of the contract. The requirement ensures that insurers communicate their intentions clearly to the insured so that individuals are not caught off guard.