Questions: An insured has the right to cancel a policy by written notification to the insurer. This notification may be mailed to the insurer or returned to the original agent who made the sale. Upon receipt of the cancellation request, the insurer will A. Have the writing agent review the policy cancellation and attempt to conserve the policy. B. Refund any premiums and policy fees within 30 days of notice if the policy is within the cancellation period specified by the insurer. C. Report the cancellation to the insurer's home office and the Department of Insurance Policy Conservation Unit for statistical data accounting purposes. D. Cancel the policy and terminate an automatic bank-drafting of premiums.

The answer is B. Refund any premiums and policy fees within 30 days of notice if the policy is within the cancellation period specified by the insurer.

While it is common for insurers to have agents attempt to conserve policies, this is not a guaranteed right or obligation upon receipt of a cancellation request. The primary action upon receiving a cancellation request is to process the cancellation, not necessarily to attempt conservation.

This option aligns with standard insurance practices. When a policyholder cancels a policy within the specified cancellation period, insurers are typically required to refund any unearned premiums and policy fees within a certain timeframe, often 30 days.

While insurers may keep records of cancellations for internal purposes, reporting every cancellation to a Department of Insurance Policy Conservation Unit is not a standard requirement. This option is less likely to be the primary action taken upon receiving a cancellation request.

While this is a necessary step in the cancellation process, it does not address the refund of premiums and policy fees, which is a critical part of the cancellation process within the specified period.