A Tennessee accident and health policy contains a provision allowing the insurer to cancel the coverage. Where must the insurer's right of cancellation be disclosed?

Why A is correct

T.C.A. § 56-26-125 requires that the insurer's right to cancel an accident and health policy be stated on the face of the policy. Placing the cancellation right on the policy's face guarantees that the insured sees the most consequential term at delivery, rather than discovering it buried in correspondence or internal documents after a claim dispute arises.

Why the other options are wrong

• B) Producer appointment records document licensing and agency relationships; T.C.A. § 56-26-125 requires the cancellation right on the policy itself.
• C) An internal claims manual is not a policy disclosure document; the statute requires the statement on the face of the policy.
• D) An annual mailing may come too late and is not what T.C.A. § 56-26-125 requires; the disclosure must appear on the face of the policy.

Memory hook

Cancellation rights go front and center — on the policy's face.