Changing a cancellation

Canceling a policy at an earlier effective date

Because of regulatory requirements, you usually cannot change the cancellation effective date of an already scheduled cancellation to an earlier effective date. However, you can create a new cancellation on the same policy with an earlier effective date if the regulatory requirements associated with the reason for that cancellation allow it. For example, you have a policy that has an open cancellation for non-payment. The insured calls and asks to cancel the policy immediately. You create another cancellation on the policy, select Insured as the Source and select a Reason. On the Confirmation screen, select Cancel Now. This cancellation preempts all open cancellations on the policy. When you bind a cancellation, PolicyCenter withdraws existing cancellations.

If a policy has a completed cancellation, you can also cancel that policy on an earlier effective date. There can be multiple open scheduled cancellations (for different reasons) on the same policy.

Canceling a policy on the same or later effective date by changing the cancellation

There are several reasons for changing the cancellation effective date. For example:

• A policy holder receives cancellation notices stating that their policy will be canceled unless they submit payment. The policy holder contacts the insurer and asks for a few extra days to reestablish the policy by submitting payment. The agent reschedules the cancellation by adding three days to the cancellation effective date.
• A catastrophe takes place in a certain region The insurer decides to give an extension on scheduled cancellations for all policies in or near the catastrophe. The insurer gives the extension to policies with a cancellation effective within a certain date range.

When you change the cancellation effective date, PolicyCenter sends a replacement cancellation notice. (You must configure this in PolicyCenter.)

If you have the Cancellation reschedule permission, you can change the cancellation effective date on an open cancellation. The code for this permission is cancelreschedule. In the base configuration, underwriters and underwriter supervisors have this permission. An open cancellation is a cancellation that has not completed.

You can change the following fields on an open cancellation:

• Reason Description – You can provide a new description.
• Cancellation Effective Date – You can move the effective date.

You cannot change the following fields:

• Source
• Reason
• Refund Method

The cancellation effective date can be moved to a date on or after the earliest allowable cancellation effective date. The earliest allowable cancellation effective date continues to be based on the date the cancellation was originally scheduled. It is not based on the date that you make the change. Because this is just a change to the policy transaction, the original restrictions on the cancellation effective date remain the same. For more information, see Calculating the cancellation effective date.

Other ways to cancel a policy on the same or later effective date

It is possible to change the cancellation effective date to the same or a later effective date even if you do not have the Cancellation reschedule permission. If you have an open cancellation on a policy, create a new cancellation and issue it by selecting Cancel Now. (When you issue a cancellation, PolicyCenter withdraws existing cancellations.)

If the cancellation has already completed, but you want to cancel the policy at a later effective date, you can reinstate the policy, then cancel it. To learn about reinstatement, see Reinstatement policy transactions.