Under what circumstance can a Louisiana insurer cancel a policy after 60 days?

The correct answer pertains to the circumstances under which an insurer can cancel a policy after a specified duration, such as 60 days. In Louisiana, an insurer may cancel a policy if there are significant changes in risk associated with the insured, such as a policyholder's son experiencing a license suspension. Such an event may reflect a heightened risk that the insurer assesses as warranting cancellation.

When a policyholder's child has their driver's license suspended, it could indicate potential increased risk related to the likelihood of accidents or claims, which might lead an insurer to determine that the terms of coverage are no longer viable. This can provide justification for the insurer's decision to cancel the policy despite the passage of time since the policy's initiation.

In contrast, failing to pay premiums on time typically leads to non-renewal processes rather than outright cancellation after 60 days. Moving out of state typically involves options for transferring coverage rather than immediate cancellation, and having a claim history is often part of the insurer's underwriting considerations for non-renewal rather than a reason for immediate cancellation post-60 days.