When Jason files a claim after being late on his auto policy premium, what is most likely to happen?

The answer is most likely rooted in the principle of implied waiver, which can occur in insurance contexts when an insurer continues to accept premiums or maintains a policy despite certain deficiencies, such as late payments. In this case, if Jason has been late on his auto policy premium but the insurer has engaged in actions that suggest they are foregoing the right to cancel the policy for non-payment—such as accepting a late payment or not formally notifying Jason about the cancellation—this can create an implied waiver of the insurer's right to deny the claim based on the late premium payment.

Implied waiver essentially means that the insurer may have unintentionally relinquished its right to enforce the strict terms of the contract due to its conduct, thereby potentially resulting in the coverage being retained. If Jason files a claim, and the insurer has failed to adequately communicate or act on the payment delays, it might be argued that the insurer is still responsible for honoring the claim, effectively overriding the late payment issue.

The other options hinge on scenarios that may not apply if there has been an implied waiver. Denying the claim outright due to policy cancellation would typically require clear communication and action from the insurer before the claim is made. Paying the claim regardless of payment history is unlikely, as insurers generally do