What must Bob's insurer do if they decide to cancel his dwelling policy?

When an insurer decides to cancel a dwelling policy, it is required to notify both the insured party (in this case, Bob) and any mortgagee, such as Sunrise Bank, that has an interest in the property. This is essential because the mortgagee has a financial stake in the property, given that they hold the loan for its purchase. Notifying the mortgagee ensures that they are aware of any changes in insurance coverage that could affect their investment.

In the context of insurance practices, the legal requirement for notifying involved parties helps to uphold transparency and protect the rights of all parties affected by the policy. This notification process ensures that Bob is informed of the cancellation and can take appropriate action to secure new coverage, while Sunrise Bank is kept in the loop to safeguard its financial interests in the property.