If a commercial auto policy cancellation notice is issued later than 60 days before expiration, how long will the policy remain in effect after the notice date?

If a commercial auto policy cancellation notice is issued later than 60 days before expiration, how long will the policy remain in effect after the notice date?

• A. 30 days
• B. 15 days
• C. 90 days
• D. 61 days

Answer: (D)

When cancellation notice is issued later than 60 days before the policy expires, the policy stays in force for a set period after the notice date to protect the insured. For commercial auto policies in Texas, that period is 61 days after the date of the notice. This provides a buffer so the insured isn’t left without coverage immediately and has time to obtain replacement coverage. So the policy remains in effect for 61 days after the notice date. The other durations don’t match the statutory extension: 30 days or 15 days are shorter than required, and 90 days is longer than the mandated 61-day extension.

When cancellation notice is issued later than 60 days before the policy expires, the policy stays in force for a set period after the notice date to protect the insured. For commercial auto policies in Texas, that period is 61 days after the date of the notice. This provides a buffer so the insured isn’t left without coverage immediately and has time to obtain replacement coverage.

So the policy remains in effect for 61 days after the notice date. The other durations don’t match the statutory extension: 30 days or 15 days are shorter than required, and 90 days is longer than the mandated 61-day extension.