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Cancel and rewrite

Refers to an insurer’s cancellation and reissuance of the same policy. Typically used to switch a policy renewal to a new date.
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Refers to an insurer&#8217s cancellation and reissuance of the same policy. Typically used to switch a policy renewal to a new date.

Cancellable

A contract of insurance that may be terminated by the insurer or insured at any time. Practically every form insurance is cancellable except Life Insurance and those Health Policies designated as a guaranteed renewable or non-cancellable and guaranteed renewable.

Cancellation

flat, pro rata, or short rateIn a flat cancellation the full premium is returned to the insured. A pro rata cancellation means the insurer has charged for the time the coverage was in force. Short rate cancellation entails a penalty in excess of pro rata for early termination. A cancellation is when the insurer cancels a policy mid-term for cause giving the insured ample notice to find coverage elsewhere as prescribed by the state insurance department.
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Flat, Pro-rata, or Short Rate : In a flat cancellation the full premium is returned to the insured i.e., the cancellation of a Policy as of its effective date without a premium charge. A pro-rata cancellation means the insurer has charged for the time the coverage was in force. Short rate cancellation is termination of an Insurance contract at the request of the insured prior to the expiration date where the contract provides for a premium larger than the charges applicable for the period. Thus, if the insured cancels the Policy before the expiration date, and increased charges is made because of the fixed expenses incurred by the Company.
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MEDICAL,USA: Termination of an insurance contract by either the insured or the insurance company before the contract matures or the end of its term period. This may occur for nonpayment of premiums.
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US: The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company.
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The termination of an Insurance contract by an Insurer or an insured prior to the end of the Policy term. Insurance contracts give Insurers and insured varying cancellation rights.
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US: The termination of an insurance policy or bond, before its expiration, by either the insured or the insurer. Insurance policy cancellation provisions require insurers to notify insureds in advance (usually 30 days) of canceling a policy and stipulate the manner in which any unearned premium will be returned. As respects reinsurance, cancellation is used in the following contexts
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The termination of insurance coverage during the policy period. Flat cancellation is the cancellation of a policy as of its effective date, without any premium charge.

Cancellation (a) Run – off basis

Run off basis means that the liability of the reinsurer under policies, which became effective under the treaty prior to the cancellation date of such treaty, shall continue until the expiration date of each policy; (b) Cut off basis : Cut off basis means that the liability of the reinsurance under policies which became effective under the treaty prior to the cancellation date of such treaty, shall cease with respect to losses resulting from accidents taking place on and after said cancellation date. Usually the reinsurer will return to the company the unearned premium portfolio, unless the treaty is written on an earned premium basis.

Cancellation Clause

A clause in a contract of insurance that gives the parties the right to terminate coverage offered in a contract under specified conditions.
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A clause in an insurance contract which permits an insurer and/or an insured to cancel the contract before it is due to expire. The clause may provide for a return of premium in respect of the unused portion of the policy.
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UK: A general insurance clause permitting the insurer to terminate insurance cover during the policy term. The clause sets out the notice procedure the insurer must follow, and the basis for refunding the unexpired premium. Some policies also give the insured the right of cancellation. See CANCELLING CLAUSE.

Cancellation Condition

The Insurance policies contain provision whereby the Insurer, on giving a specific period of notice and returning a proportionate part of the premium may cancel the Policy. Sometime the insured is given a similar right to cancel the contract during the currency of the Policy.

Cancellation rights

The FSA’s ICOB Rules require retail customers to be given a cancellation period of 14 days for general insurance contracts and distance non-investment mediation contracts, and 30 days for pure protection contracts, or, if later, the date of receipt of the policy documents.