When can Sarah Saddle cancel her recently purchased PIP/PD policy?

The correct answer focuses on the condition under which Sarah can cancel her Personal Injury Protection (PIP) and Property Damage (PD) policy. When an insured individual secures replacement coverage, they typically have the authority to cancel their existing policy. This is a commonly accepted practice, as the new policy may provide similar or enhanced benefits, making the cancellation of the previous policy appropriate.

Cancellation after a certain period, such as 30 days, is generally applicable for many insurance policies but may require specific conditions or may not apply to certain states or situations, depending on the policy's terms. Also, cancellation within the first week might be misleading, as many contracts include specific cancellation provisions that could limit this option. Simply being unsatisfied with the coverage does not automatically grant the right to cancel the policy; satisfaction is often subjective and not a contractual basis for termination.

Understanding these principles highlights the importance of recognizing that obtaining a replacement policy creates a valid reason for cancellation, aligning with industry standards and the intent to prevent overlapping coverage.