In a cancelable health policy, who may terminate coverage?

• A. The insurer or the insured
• B. The employer
• C. The insurer only
• D. The insured only

Answer: (A)

The key idea is that cancelable health policies let either party end the coverage. In this type of contract, the insured can drop the policy if they choose, and the insurer can cancel under the policy terms (often with proper notice or specific reasons). That dual ability to terminate from both sides is what defines a cancelable contract and is why this option is the best choice. The employer isn’t the party that controls cancellation in this context, and limiting cancellation to only one side would describe a noncancelable or restricted arrangement, not a truly cancelable policy.