EstatePass
PLMAmedium

Which of the following is NOT a permitted statutory ground under M.G.L. c. 175 §22C for an insurer's mid-term cancellation of a Massachusetts compulsory auto policy?

The insurer's desire to reduce its overall market share in Massachusetts
BNon-payment of premium
CSuspension or revocation of the operator's license
DFraud or material misrepresentation in the application for the compulsory auto policy

Why this is the answer

M.G.L. c. 175 §22C makes a motor vehicle policy noncancellable by the company except for nonpayment of premium, fraud or material misrepresentation in the application, suspension or revocation during the policy period of the license or registration of the named insured or a household member who usually drives an insured vehicle, and a few other listed grounds such as refusing a required vehicle inspection. An insurer's business decision to shrink its book of business is not on that list.

Studying for the MA Personal Lines exam?

This question comes from our PL bank. Take a free practice test — no signup.