Cancellation

9 months ago

Insurance Glossary Team

1 minute

Plain English Definition: Cancellation refers to the termination of an insurance policy before its scheduled end date.

What Cancellation really means for someone with an insurance policy

Cancellation can occur at the policyholder’s request or the insurer’s decision. It may involve refunds or penalties depending on the terms outlined in the insurance contract.

Cancellation Real World Examples

A homeowner cancels their insurance policy after selling their house.
An insurer cancels a car insurance policy due to non-payment of premiums.
A policyholder switches to a different provider and cancels their existing coverage.