Under Alabama Law, an insurer can cancel an automobile policy for any reason except for what?

An insurer in Alabama is restricted from canceling an automobile policy simply because the policyholder pays their insurance premium on time. Timely payment of premiums is a fundamental obligation of both the insurer and the insured. Cancelling a policy due to prompt payment would be discriminatory and could undermine the trust relationship that underpins insurance contracts.

In contrast, filing a claim (the first choice) can sometimes lead to cancellation, especially if claims are frequent or pose a risk to the insurer. Driving without a license (the third choice) is a violation of the law that could indeed justify policy cancellation because it affects the insured's legal ability to operate a vehicle. Not renewing the policy (the last choice) involves a different process and does not necessarily denote cancellation mid-term but rather the insurer's decision at the policy's end. Therefore, the best option indicating an action that cannot lead to cancellation is related to the timely payment of the insurance premium.