Who may terminate coverage under a cancelable health insurance policy?

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

Answer: (D)

In a cancelable health policy, both sides have the right to end coverage. The insured can terminate the policy at any time by notifying the insurer (and usually by stopping premium payments), with coverage ending according to the policy terms and any applicable notice period. The insurer can also cancel the policy, typically with advance written notice and in line with the policy and state laws, often refunding any unearned premium. Because either party can initiate termination, the correct idea is that the coverage may be terminated by the insurer or the insured.