What relationship exists between cancellation and policy expiration?

In the context of insurance policies, cancellation refers to the early termination of a policy before its scheduled expiration date. This means that a policyholder or an insurer can end the agreement prior to the completion of the stated term. Therefore, cancellation is inherently linked to policy expiration because it can only occur when there is still time left on the policy; it cannot happen after the policy has already expired.

This understanding reinforces the notion that once a policy reaches its expiration date, it is no longer active, and unlike cancellation, there’s no opportunity for the policy to be terminated since it has already concluded. Thus, the accurate relationship is that cancellation can only happen before expiration, solidifying the conditional nature of when a cancellation can legitimately take place in relation to the active status of an insurance policy. Other options suggest situations that either misrepresent the timing of cancellation relative to expiration or incorrectly introduce priorities that do not align with the fundamental definitions in insurance practices.