Which of the following is a factor that might lead to the cancellation or non-renewal of an insurance policy?

In the context of insurance policies, failure to comply with the insured's duties is a significant factor that could lead to the cancellation or non-renewal of a policy. Insured individuals have specific responsibilities outlined in their policy documents, which may include timely premium payments, providing accurate information when requested, reporting claims promptly, and allowing access to the insured property for inspections. If an insured fails to meet any of these obligations, the insurer has the right to cancel or refuse to renew the policy, as the adherence to these duties is crucial for the insurer to evaluate risk and manage their liability effectively.

Other factors mentioned, such as lower territory risks, accrued discounts, and minimal claims history, typically reflect favorable conditions rather than reasons for cancellation. Lower territory risks can even result in lower premiums, accrued discounts represent rewards for good behavior (such as no claims), and a minimal claims history usually suggests a lower likelihood of future claims, making the insured more favorable in the eyes of the insurer. Thus, these options do not typically lead to policy cancellation or non-renewal, unlike failure to comply with the insured's duties.