Policies that may only be terminated by the insurer after written notice and after the period indicated in the policy expires are referred to as which term?

• A. Cancellable
• B. Cancelable
• C. Noncancellable
• D. Revocable

Answer: (A)

The main idea here is who has the right to end the policy and under what conditions. A policy described as cancellable means the insurer has the right to terminate the contract, but only after giving written notice and only after the period stated in the policy has expired. This exact wording reflects that the insurer can cancel, provided proper notice is given and the policy’s term has passed.

Noncancellable would mean the insurer cannot cancel the policy at all, which isn’t what’s described. Revocable isn’t the term used for this context, and cancelable is just an alternate spelling; the Canadian terminology typically uses cancellable.