Cancellation

Question 1

When can policies be cancelled

Answer 1

By the insured immediately at anytime

Question 2

When the insured cancels the policy

Answer 2

the insurer must obtain the policy signed off by the insured or obtain written authorization

Question 3

When insurer cancels the policy

Answer 3

give insured notice of the termination in a specific manner, usually 15 days by registered mail or 5 days written notice of termination when personally delivered

Question 4

Reasons for insurer cancellation

Answer 4

• non-payment of premium
• misrepresentation of risk
• fraudulent activity within policy

Question 5

Retained Policy Premium for cancellations

Answer 5

50$ minimum retained policy premium

Question 6

Short term 30 day policies

Answer 6

trip transit coverage is 30 day short term insurance policy and is subject to fully earned premiums

Question 7

Snowmobiles cancellation

Answer 7

if insured cancels or removes snowmobile from policy, or removes their snowmobile physical damage coverage, insurers keep a portion of the premium based on seasonal use and calculations based on percentages of time on risk

Question 8

Pro-rata cancellation

Answer 8

when return of premium paid is the full proportionate part due for the unexpired term

Question 9

Short-rate cancellation

Answer 9

applicable when the return premium paid is less than the proportionate or pro rata part or time on risk that is still unearned

Question 10

Special cancellation for seasonal vehicles

Answer 10

subject to a cancellation endorsement charged on a monthly basis due to greater exposure in some months over other months

Question 11

Flat cancellations

Answer 11

for insurers, if the insured does not accept their renewal the policy may be cancelled flat that is no penalty for time on risk

min. retained premium may be charged when cancelling a policy