Under what condition may an insurance policy be cancelled before one year?

The correct answer is that an insurance policy may be cancelled before one year if there is a material change in the risk. This condition highlights the insurance principle that the risk being insured must remain stable. A material change in the risk can include developments such as a change in the property being insured, negligence in maintenance, or other significant events that increase the likelihood of a claim. If the insurer determines that the original risk has fundamentally altered, they may choose to cancel the policy to mitigate potential losses.

When an insurer issues a policy, they assess the risk based on the information provided at that time. If new information comes to light indicating that the risk has increased significantly, it can justify the insurer's decision to cancel the policy. This ensures that insurance companies can protect themselves from exposures that deviate significantly from their underwriting criteria.

In contrast, the options suggesting cancellation conditions such as an insured's request, the insurer finding a better risk, or the insured failing to provide updated personal information don’t align with the standard conditions under which a policy can be canceled. An insured's request typically results in a cancellation at the insured's convenience, while finding a better risk doesn't constitute a legitimate reason for cancellation of an existing policy. Additionally, although failing to provide updated information