What may occur if an insured is involved in an at-fault accident with a traffic violation?

When an insured is involved in an at-fault accident that includes a traffic violation, option B is the correct course of action as it reflects the practices of many insurance companies regarding premium adjustments. In this scenario, a surcharge can be applied, which is an increase in the premium based on certain risk factors—including accidents and traffic violations. The surcharge reflects the insurer's assessment of increased risk due to the incident, which may ultimately lead to a higher premium.

Insurance companies often evaluate various elements like the severity of the accident and the nature of the traffic violation to determine the most appropriate adjustment. In this context, the premium increase might be based on both the accident and the violation, allowing for the higher surcharge to take effect, thereby offering a more nuanced adjustment based on risk assessment.

Furthermore, the other options are not applicable in scenarios involving at-fault accidents with traffic violations. Automatically losing coverage or being ineligible for further coverage is typically not a direct consequence of a single incident; rather, insurers may choose to continue providing coverage with the application of surcharges instead. Refunds are also not generally given due to increased premiums unless there are specific circumstances leading to a policy cancellation or adjustment outside of the typical surcharge scenario. This highlights why option B is the most accurate