Under what circumstance can an insurer cancel a dwelling policy midterm?

The insurer can cancel a dwelling policy midterm if the insured knowingly misstated the age of the property on the policy application. This is important because accurate information on a policy application is crucial for underwriting and determining the appropriate premium for coverage. If an insurer discovers that the age of the property has been misrepresented, it undermines the risk assessment process and may lead to financial losses for the insurer. Therefore, such dishonesty allows the insurer to exercise its right to cancel the policy, as the foundation of the contract has been compromised.

The other options do not typically provide grounds for midterm cancellation. For instance, reaching the limit on the number of claims or the insured's claims exceeding the coverage may influence future renewals or affect policy terms but usually do not allow for immediate cancellation. Additionally, if the insured desires to increase coverage, this action itself does not constitute a valid reason for cancellation; instead, it may prompt the insurer to reassess the policy or adjust the premiums accordingly.