In Illinois, if a fire and extended coverage policy has been in effect for less than 60 days, which of the following is NOT an allowable reason for cancellation by the insurer?

In Illinois, under insurance regulations, an insurer may cancel a fire and extended coverage policy within the first 60 days for specific reasons. Non-payment of premiums and an insured's failure to comply with policy terms are both acceptable grounds for cancellation. Additionally, an unfavorable underwriting risk assessment could justifiably lead to a cancellation during this early period as it reflects the insurer's assessment of the risk involved in covering the policyholder.

However, having two or more claims filed jointly does not fall under the allowable reasons for cancellation within the first 60 days. This is primarily because the insurer should not penalize the insured based on multiple claims at the beginning of the policy term, especially when they have not had a sufficient period to assess the risk and frequency of claims. The focus during the initial period emphasizes the insured's responsibility and compliance rather than their claims history, which aligns with consumer protection principles in insurance. This nuanced understanding reinforces the rationale for why cancellation based on claims filed jointly is not permitted within this timeframe.