Georgia Adjuster Practice Test

How many days advance cancellation notice must be sent to the first named insured if a commercial lines policy has been in effect for more than 60 days?

1. 30 days

2. 45 days

3. 60 days

4. 90 days

The correct answer is: 45 days

The correct answer, which states that 45 days advance cancellation notice must be sent to the first named insured if a commercial lines policy has been effective for more than 60 days, is based on the regulations governing insurance policies in Georgia. When a commercial policy exceeds the 60-day mark, the law mandates that insurers provide adequate time for the insured to seek alternative coverage or to address any issues regarding the cancellation. This is intended to ensure fair treatment of policyholders and to uphold the principle of providing sufficient time for potential disputes or necessary arrangements. In this scenario, it's essential to recognize the importance of the 45-day notice period as it reflects the balance between the insurer's right to cancel a policy and the obligations to the insured. Insurers must follow this statutory requirement to remain compliant and ensure they are operating within the legal framework established for commercial insurance contracts in Georgia.