Which of the following is NOT a type of policy transaction?

Which of the following is NOT a type of policy transaction?

• A. Submission
• B. Cancelled
• C. Expired
• D. Reinstated

Answer: (C)

A policy transaction refers to any action or change made to an insurance policy during its lifecycle. Submissions, cancellations, and reinstatements are all actions that can occur within the framework of a policy. Submissions are the initial proposals for coverage from potential insureds, which begin the process of getting a policy issued. Cancellations involve terminating a policy before its expiration date, either at the request of the policyholder or due to violations of terms. Reinstatements occur when a previously canceled policy is put back into effect, typically after the reasons for cancellation have been resolved. In contrast, an expired policy is a state of a policy that has reached its end date but is not an active transaction in the way the other terms are. While expiration signifies the conclusion of coverage, it does not represent an active decision or action to change the status of the policy. Hence, it correctly fits the criteria of "NOT a type of policy transaction."

A policy transaction refers to any action or change made to an insurance policy during its lifecycle. Submissions, cancellations, and reinstatements are all actions that can occur within the framework of a policy.

Submissions are the initial proposals for coverage from potential insureds, which begin the process of getting a policy issued. Cancellations involve terminating a policy before its expiration date, either at the request of the policyholder or due to violations of terms. Reinstatements occur when a previously canceled policy is put back into effect, typically after the reasons for cancellation have been resolved.

In contrast, an expired policy is a state of a policy that has reached its end date but is not an active transaction in the way the other terms are. While expiration signifies the conclusion of coverage, it does not represent an active decision or action to change the status of the policy. Hence, it correctly fits the criteria of "NOT a type of policy transaction."