Which advice is correct when handling an insurance policy cancellation for a sold car?

When handling an insurance policy cancellation for a sold car, it is important to forward the notice to the insurer for a refund. This step ensures that the insurer is officially notified of the cancellation and can process any refunds due to the insured. It also allows the insurer to update their records appropriately, which can help in preventing any future complications regarding the coverage of the sold vehicle.

By taking this action, the insured is following the proper protocol, which not only facilitates a smooth cancellation process but also protects their interests, as they should receive any refund amount they are entitled to based on the terms of the policy. Proper communication with the insurer is critical to ensure compliance with their procedures and to avoid potential misunderstandings.

Other options may lead to complications, such as keeping the policy active unnecessarily or issuing a refund without following the required procedures.