Cancel a policy

A policy can automatically or manually be canceled. A policy will cancel automatically due to non-pay of premium. See Cancellation for non-pay of premium. To cancel a policy for reasons other than non-pay of premium, you must cancel it manually. You can manually cancel a policy from the policy header of a policy’s Overview screen. 

To manually cancel a policy: 

  1. Select Policies and Quotes.
  2. Search for and select the policy you want to cancel. The policy’s Overview screen will display.
  3. In the policy header, navigate to and select Cancel Policy. The Cancel Policy dialog box will open.
  4. From the Cancel when dropdown list, select when the policy should cancel:
    • Effective Date (Cancel Flat): This will cancel the policy back to the effective date of the policy. When you flat cancel a policy:
      • The policy status is changed to Canceled.
      • A policy transaction is created in the Policy History tab with the transaction’s Effective Date listed as the policy’s transaction date and the Transaction type listed as Canceled.
      • Endorsements dated after the policy’s effective date are removed.
      • The Account History table doesn’t show invoices.
      • Any premium payment is returned.
      • An entry will generate in the policy’s Notes screen.
      • The Confirmation of Cancellation deliverable and, if applicable, the Return Premium document are added in the Attachments screen of the policy.
    • Put into Cancellation Pending Now: The policy status will change to Cancellation Pending and the cancellation date will be set based on Policy Lifecycle Cancellation settings. When you mark a policy as Cancellation Pending:
      • The policy status is changed to Cancellation Pending.
      • A policy transaction is created in the Policy History tab with the Effective Date listed as today’s date and the Transaction listed as Cancellation Pending.
      • If canceled, unearned premium and unbilled fees will be removed from the Accounts Receivable screen, so only the return premium or earned, but unpaid, premium will display.
      • An entry will generate in the policy’s Notes screen.
      • The Confirmation of Cancellation deliverable and, if applicable, the Return Premium document are added in the Attachments screen of the policy.
    • Cancel Immediately: This will terminate the policy immediately, and the policy status will change to Canceled. When you cancel a policy immediately:
      • The policy status is changed to Canceled.
      • If future endorsements exist, they’re removed.
      • A policy transaction is created in the Policy History tab with the Effective Date listed as today’s date and the Transaction listed as Canceled.
      • If the premium is overpaid at time of cancellation, a credit is issued. If the premium isn’t fully paid at time of cancellation, an adjustment is created.
      • Unearned premium and unbilled fees are removed from the Accounts Receivable screen, and only the return premium or earned, but unpaid premium is displayed.
      • An entry will generate in the policy’s Notes screen.
      • The Confirmation of Cancellation deliverable and, if applicable, the Return Premium document are added in the Attachments screen of the policy.
    • Cancel on Specific Date: When you select this option, an additional Cancellation date box will appear. Use the date picker to select the date of cancellation or type the date of cancellation. When you select a specific date to cancel the policy:
      • A policy transaction is created in the Policy History tab with the Effective Date listed as the specified date and the Transaction type listed as Canceled.
      • If the premium is overpaid at time of cancellation, a credit is issued. If the premium isn’t full paid at time of cancellation, an adjustment is created.
  5. From the Cancellation Reason dropdown list, select the reason for cancellation.
  6. In the Print Description box, type information regarding the cancellation. The information you type in the Print Description box will appear on the Confirmation of Cancellation notice.
  7. In the Additional Description box, type any additional information regarding the cancellation. The information you type in the Additional Description box will populate the Policy Changes Description box in the Policy History tab and will populate in the note automatically generated on the Notes screen of a policy.
  8. When you finish adding information, select Confirm. The policy will cancel.

Usage considerations

  • In the Cancel Policy dialog box, if you select Back instead of Confirm, you will return to the policy’s Overview screen and the policy won’t be cancelled. If you open the Cancel Policy dialog box again, the information you previously entered will remain. 
  • The cancellation date for a policy can’t be before the effective date of a claim filed against the policy. If you try to cancel a policy with a date that falls before the effective date fo a claim, a warning message will appear. 
  • After you select an option from the Cancel when dropdown list, a message will appear above the Confirm button in the Cancel Policy dialog box. The message will identify the cancel date of the policy based on the option you select from the Cancel when dropdown list and the configured settings.