State RegulationsFL specificDifficulty 1/5
Which is a permissible ground for a Florida insurer to cancel an individual health policy before its expiration date?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, an insurer's right to cancel an individual health policy before the expiration date is sharply limited; nonpayment of premium is the classic permissible ground. Deteriorating health, the filing of covered claims, and advancing age are precisely the grounds the law forbids, because they would let the insurer keep only healthy insureds. The Department of Financial Services enforces these cancellation restrictions against insurers and agents.
Why the other options are wrong
- A) Cancelling because the insured's health deteriorated is prohibited; sickness is the very risk the policy covers.
- B) Filing an expensive covered claim is not a permissible cancellation ground.
- D) Advancing age after issue is not a permissible ground for mid-term cancellation of an individual health policy.
Memory hook
Don't pay the premium, lose the plan — otherwise it stays.