An insurer may cancel a policy midterm for all of the following reasons EXCEPT which?

• A. Fails to pay the premium when due
• B. Makes a material misrepresentation
• C. Makes a substantial breach of policy conditions or contractual duties
• D. Has a change in marital status

Answer: (D)

Cancellation midterm is tied to actions that affect the contract’s risk or compliance. Not paying the premium when due is a standard ground because the insurer cannot cover unpaid risk. A material misrepresentation means false or misleading information that changes the risk the insurer assumed, which can lead to cancellation. A substantial breach of policy conditions or contractual duties shows the insured failed to meet the agreement’s requirements, justifying termination. A change in marital status, by itself, does not alter the policy’s risk or breach its terms; it may require updates like beneficiary or dependent status, but does not automatically cancel the policy midterm.