Which of the following statements is true about cancellation of an insurance policy?
A. Insurance contracts contain a reinstatement clause that allows an insured to reinstate a cancelled policy.
B. Insurers that cancel a contract need not return the unearned portion of any premiums paid by the insured.
C. Insureds who terminate a contract are entitled to a return of the premium on a short-rate basis.
D. Insurers can cancel insurance contracts by surrendering the policy to the insured.
Answer: C
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