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Cancellation of an insurance policy before the end of the policy period has the effect of ending the insurance coverage on the date of the cancellation. This can result in a partial return premium which can be calculated in different ways depending on the method specified in the policy.
GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks. Some financing companies and lease contracts require it. [2] GAP insurance covers the amount on a loan that is the difference between the amount owed and the amount covered by another insurance policy. [1] Some GAP policies also cover the deductible. [3]
This law reduces consumer risk by requiring more disclosure from gap insurance sellers and placing restrictions on selling gap insurance that covers less than 70 percent of the vehicle’s value.
In some cases, estimates can be too low because of "demand surge" after a catastrophe. [ 7 ] Historically, consumers could purchase "guaranteed replacement cost" coverage which ensure sufficient limits if the estimate was too low, but these became "virtually extinct" after several California disasters including the Oakland firestorm of 1991 ...
In 1999 the Homeowners Protection Act of 1998 came into effect as a federal law of the United States, which requires automatic termination of mortgage insurance in certain cases for homeowners when the loan-to-value on the home reaches 78%; prior to the law, homeowners had limited recourse to cancel [9] and by one estimate, 250,000 homeowners ...
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In numerical analysis, catastrophic cancellation [1] [2] is the phenomenon that subtracting good approximations to two nearby numbers may yield a very bad approximation to the difference of the original numbers.
When the governor in January unveiled the state’s budget plan for the upcoming fiscal year, it predicted the state would face an almost $37.9 billion gap. Newsom, at the time, said the ...