When a party with the power to terminate an insurance policy exercises that power,a(n) ________ has occurred.

A) lapse
B) cancellation
C) reformation
D) rescission

Terminate

Refers to the action of bringing something or an agreement to an end before its natural conclusion.

Cancellation

The act of crossing out a writing. The operation of destroying a written instrument.

Lapse

The termination or expiration of a legal right, policy, or agreement due to the passage of time or inaction.