Rewrite to new account on future date within the policy term

When you rewrite a policy to a new account, the effective date of the policy can be a future date within the canceled policy term. Policy transactions on the source policy have some restrictions.

In the illustration below, Account #1 is the source policy with a cancellation date of July 1, 2020. Account #2 is the rewritten policy with an effective date of October 1, 2020.



The following table shows restrictions for policy transactions on the source policy.

Policy transaction

Restriction

Submission

Not applicable.

Policy Change

Not allowed on and after the effective date of the rewritten policy (Term D).

Cancellation

Not allowed on and after the cancellation date of the source policy. Does not differ from the usual behavior.

Reinstatement

Not allowed on and after the cancellation date of the source policy because the reinstated period would overlap the rewritten policy (Term D).

To reinstate the gap from 07/01/2011 until 10/01/2011:

  1. Do a policy change on term B, and set the period end date to 10/01/2011, the effective date of the rewritten policy.
  2. Reinstate the policy.

Rewrite

Not allowed on and after the cancellation date of the source policy because the rewritten policy overlaps Term D or its successors.

To rewrite the gap from 07/01/2011 until 10/01/2011:

  1. Do a policy change. Change the end date of Term B to 10/01/2011, the effective date of the rewritten policy.
  2. Rewrite the remainder of the term.

Renewal

Not allowed on or after the effective date of the rewritten policy (Term D). Therefore, Term C cannot be renewed.

Audit

Allowed.

Rewrite New Account

Not allowed.