Set up cancellation and reinstatement notices

The table below summarizes BriteCore’s cancellation notices and their uses:

Table 1: Cancellation and Reinstatement Notices

Notice Of Non-Renewal

Example 1

You’re hereby notified in accordance with the terms and conditions of the above-mentioned policy, and in accordance with the law, that your insurance will cease at and from the hour and date mentioned above.

THE REASON FOR CANCELLATION IS: {nonrenew_reason} {print_description}

Unearned premium, if any will be refunded within a reasonable time.

In respect to any commercial lines policy provided to you, the first-named insured or his/her authorized agent/broker may request in writing loss information with respect to this policy and previous policies we have written for you. We will provide this information within 10 days from the date we receive your request.

If you have any questions in regard to this termination, please contact the Company’s representative: John Smith.

Insurance Law prohibits insurers from engaging in redlining practices based upon geographic location of the risk or the producer. If you have any reason to believe that we have acted in violation of such law, you may file your complaint with the Department either on its website at [site] or by writing to the Department of Financial Services, Consumer Assistance Unit, Financial Frauds and Consumer Protection Division, at either [address].

This policy provides fire and extended coverage insurance on your property. You should contact your agent or any agent concerning coverage through another insurer, or your possible eligibility for coverage through the Property Insurance Underwriting Association. Or, you may contact this insurance company or your agent at: {agency} {agency_phone}.

Only with respect to any personal lines policy provided to you, certain properties located a defined distance from the shore of a saltwater ocean, sound, bay or inlet may be eligible for the Coastal Market Assistance Program (C-MAP). To contact this insurance company or your agent to see if you’re eligible for C-map, please call {agency} {agency_phone}

Example 2

We thank you for your past business with our company; however, we regret to inform you that we will not be able to continue your insurance policy. You’re hereby notified in accordance with the terms and conditions of the above-mentioned policy that your insurance will cease at and from the hour and date mentioned above. If the premium has been paid, a premium adjustment will be made as soon as practicable after cancellation becomes effective. If the premium has not been paid, a bill for the premium earned to the time of the cancellation will be forwarded in due course.

Reason: This Policy To Be Canceled As Shown Above Because – {nonrenew_reason} {nonrenew_description}

Please Note: Coverage may be available through the Joint Underwriting Association.

No Other Notice of Cancellation Will Be Sent. We reserve the right to refuse any request for reinstatement after the cancellation date.

Notice Of Cancellation

Example 1

We regret to inform you that we will not be able to continue your insurance policy. You’re hereby notified in accordance with the terms and conditions of the above-mentioned policy that your insurance will cease at and from the hour and date mentioned above. If the premium has been paid, a premium adjustment will be made as soon as practicable after cancellation becomes effective. If the premium has not been paid, a bill for the premium earned to the time of the cancellation will be forwarded in due course.

Reason: This Policy To Be Canceled As Shown Above Because – {cancellation_reason}{print_description}

Please Note: Coverage may be available through the Joint Underwriting Association.

No Other Notice of Cancellation Will Be Sent. We reserve the right to refuse any request for reinstatement after the cancellation date.

Notice to Mortgagee or other Interested Parties:

{mortgagee}

This will serve as your notice based on the terms and conditions of the policy that your interest(s) is also being canceled based on the reasons stated above. The date and time of the cancellation will be effective as reflected in this notice.

Example 2

You’re hereby notified in accordance with the terms and conditions of policy {policy_number} that your insurance coverage ends at 12:01 AM (Standard Time) on {cancellation_date}.

The reason for this action is: {cancellation_reason}

Please contact {agency} at {agency_phone} regarding any of the following:

1) Questions about this cancellation.

2) The availability of coverage from another company.

3) The availability of coverage through the Kansas All-Industry Placement Facility, also known as the Kansas FAIR Plan.

Notice Of Cancellation Non-Payment Of Premium

Example 1

You’re hereby notified in accordance with the terms and conditions of policy {policy_number} that your insurance coverage ends at 12:01 AM (Standard Time) on {last_nonpay_cancel_date}.

This is due to non-payment of premium that was due on {last_nonpay_due_date}.

To maintain uninterrupted coverage, a payment must be received in our office for {past_due} (which includes a non-refundable late payment fee of {late_payment_fee}) before 12:01 AM (Standard Time) on {last_nonpay_cancel_date}.

Please note this is the last notice you will receive regarding this matter.

Please contact {agency} at {agency_phone} with questions regarding this notice.

Example 2

Our records show that we have not received your premium payment for the above-referenced policy that was due {due_date}. You’re hereby notified in accordance with the terms and conditions of the above-mentioned policy that your insurance will cease at and from the hour and date mentioned above. If you believe our records to be in error, or you failed to pay your premium by the due date, please contact your agent listed above immediately.

Reason: This Policy To Be Canceled As Shown Above Because – {cancellation_reason}

The amount due is {amount_due} and an additional late fee of {late_payment_fee}. Please pay this amount before the {cancellation_date}.

No Other Notice of Cancellation Will Be Sent. We reserve the right to refuse any request for reinstatement after the cancellation date.

PLEASE NOTE: Coverage may be available through the Joint Underwriting Association.

Notice to Mortgagee or other Interested Parties:

{mortgagee}

This will serve as your notice based on the terms and conditions of the policy that your interest(s) are also being canceled based on the reasons stated above. The date and time of the cancellation will be effective as reflected in this notice.

Example 3

“As a courtesy”, we provide this notice 10 days prior to the expiration date of the policy “as a reminder of your premium due.” This will serve as notice that the above policy “Will Be Canceled” as of {cancellation_date}. If the premium is not received and the policy cancels, a “confirmation of cancellation” will be sent to all parties.

Coverage from this {policy_type} policy will not be in force after the date noted above. You’re receiving this reminder notice due to “{cancellation_reason}.”

The premium amount of {amount_due} must be received in our office prior to {cancellation_date}. We reserve the right to refuse any request for reinstatement after the cancellation date.

Notice to Mortgagee or other Interested Parties:

{mortgagee}

This will serve as your notice based on the terms and conditions of the policy that your interests will also be canceled based on the reasons stated above. The date and time of the cancellation will be effective as reflected in this notice. If the premium is not received and the policy cancels, a “confirmation of cancellation” will be sent to all parties.

Example 4

Your policy premium of {past_due} is past due. If payment is not received before {cancellation_date}, your policy will be canceled for non-payment of premium on the “Cancellation Will Take Effect:” date shown above. If premium payment has been made, please disregard this notice.

If you have any questions about your bill, please feel free to contact CARRIER, or {agency} at {agency_phone}.

Change the Header on Notice of Cancellation Non-Payment of Premium

A setting in the Administrative Portal allows the value of the Notice of Cancellation Non-Payment of Premium report header to be customized to client specifications. It will default to the value which most states use, but can be updated should a client require the header to have different wording.

Ex: Clients in Pennsylvania require special wording for the Notice of Cancellation Non-Payment of Premium report header due to state regulations.

  1. Settings > Advanced.
  2. Navigate to the cancellation-notice-nonpayment-prem setting within the Reports section:
    • Select reports from the list at the right; OR
    • In the Search for a Setting box, type cancellation-notice-nonpayment-prem.
  3. Press Enter/Return on your keyboard or select Search.
  4. Make changes to the header text within the Setting Value field.

The new header will appear on the Notice of Cancellation Non-Payment of Premium report.

Confirmation Of Cancellation

Example 1

Policy Cancellation date is {cancellation_date}

Your policy was canceled on the above date and is no longer in force with this company. If your policy canceled for non-payment of premium, please contact your agent, shown above, immediately concerning the possibility of reinstatement and what actions you must take. Your time-frame to act is very limited, so call your agent today. For your financial security, you should secure replacement coverage as soon as possible.

As a result of this cancellation, there may be earned premium due to the company for the period of time this policy was in effect. The amount due of {amount_due} shown below is the premium you owe to close out your account with a zero balance as of the cancellation date shown above. It is not the amount due to reinstate your policy and payment of this amount will not reinstate your policy. If the amount due is blank or $0.00, there is no earned premium and no payment is required. Please remit any amount due within 20 days.

If there is an amount due and it is not paid promptly, we may forward your account to our collection agency for further action.

EARNED PREMIUM INVOICE

Please return this stub with your payment to:

INSURANCE COMPANY

ADDRESS

CITY, STATE ZIP

AMOUNT DUE: {amount_due}

POLICY NUMBER: {policy_number}

NAMED INSURED: {insured}

Please remit within 20 days and include your policy number on your check.

Example 2

This will serve as notice that the above policy “Has Been Canceled” as of {cancellation_date}.

Coverage from this {policy_type} policy is no longer in force as of {cancellation_date}. You’re receiving this notice of cancellation due to “{cancellation_reason}.”

No Other Notice Will Be Sent. We reserve the right to refuse any request for reinstatement after the cancellation date.

{print_description}

Notice to Mortgagee or other Interested Parties:

{mortgagee}

This will serve as your notice based on the terms and conditions of the policy that your interest has been canceled based on the reasons stated above. The date and time of the cancellation was effective as noted above.

Notice of Reinstatement

Example 1

This will serve as notice that the above-listed policy issued by our company has been reinstated in accordance with the terms and conditions of the policy. The reinstatement is effective on {reinstatement_date}.

If your Premium Payment check is dishonored for any reason, this notice of Reinstatement is null and void and its mailing does not rescind the prior notice of cancellation. No second notice of cancellation will be sent.

You’re hereby advised that you must immediately notify the company of any change concerning this policy, including, but not limited to: a change in ownership, occupancy, or use of the insured property. Your failure to do so may result in loss of insurance coverage herein.

{print_description}

Example 2

Policy set to Active: {print_description}

This will serve as notice that the above-listed policy has been reinstated and is in full force and effect. As a result of this transaction, a $15 reinstatement fee may have been charged to your policy.

If for any reason your premium payment is subsequently dishonored this Notice of Reinstatement is rendered null and void and does not rescind our previous Notice of Cancellation. You will be charged a $30 fee for all dishonored premium payments.

Thank you for your business.

Example 3

This will serve as notice that the above-listed policy issued by our company has been reinstated in accordance with the terms and conditions of the policy. The reinstatement is effective on {reinstatement_date}

If your Premium Payment check is dishonored for any reason, this notice of Reinstatement is null and void and its mailing does not rescind the prior notice of cancellation. No second notice of cancellation will be sent.

{print_description}

Example 4

The cancellation notice on policy # {policy_number} is reinstated, and the policy is continued in force.

If you previously received a Notice of Cancellation for Non Payment of Premium, payment has been received. In the unlikely event that this payment is not honored by the bank, this notice is void and the cancellation notice previously issued remains in effect.

If you previously received a Notice of Cancellation or Refusal to Renew, we thank you for your prompt attention to this matter.

We appreciate your business and value you as a member of our company.

Continuation of Coverage – NonPay

Example 1

Payment of {last_payment_amount} was received on {last_payment_date}. Thank you for your payment on {last_payment_date} in the amount of {last_payment_amount}. As a result, policy number {policy_number} is continued in force.

In the unlikely event that your payment is not honored by your bank, this Continuation of Coverage notice is void and the Cancellation Notice previously issued remains in effect.

Thank you! We appreciate your business and value you as a member of our company.

Example 2

Payment has been received on Policy #{policy_number} which was due on {due_date}.

You recently received a Cancellation Notice on the above-mentioned policy. The notice is voided. The policy remains in full force with no interruptions in coverage.

Example 3

Dear {insured}:

CARRIER hereby acknowledges receipt of past due premium on the above reference policy. The policy was previously in Non-Pay Cancellation Pending status while awaiting receipt of your payment. By receiving this notice, you’re assured that the policy you carry with our company has been paid and is currently in good standing.

A late fee of $7.00 may have been charged from the amount you paid with the balance being applied to your policy. For future reference, you can make your payment online by going to www.fmtinsurance.com/make-a-payment.

If you believe this letter is in error or have any questions, please contact your agent at:

{agency} at {agency_phone}

Sincerely,

NAME

{mortgagee}

Continuation of Coverage – Other

Example 1

The Notice of Cancellation or Refusal to Renew on policy number {policy_number} is hereby rescinded and the policy is continued in force.

Thank you for your cooperation and prompt attention to this matter. We appreciate your business and value you as a member of our company.

Example 2

NOTICE OF RESCINDED CANCELLATION

CARRIER hereby rescinds the NOTICE OF CANCELLATION previously issued for the following reason:

{cancellation_reason}

{print_description}

Policy: {policy_number}

A copy of this Continuation of Coverage notice has been sent to mortgagee(s), additional insured(s), and ‘Bill to’ addressee listed on the policy declarations page.

Your policy will not be canceled, and any coverages in effect at the time of the previous notice will continue in force with no interruption, unless changed by you later.

Insured Property:

{insured_properties}

(Note: Please see declarations page for additional properties that may be listed)

Enforce Underwriting and Non-Pay Cancel Dates

A new option available on the Policy Lifecycle screen, Enforce Cancel Date IF NonPay Cancel is Later Than UW, allows clients to enforce underwriting and non-pay cancel dates. When there is an overlapping non-pay cancellation on an active underwriting pending cancellation, the setting will place a higher priority on the underwriting cancellation if it has a cancel date prior to the non-pay date. The notices of cancellation will state that a payment or resolution of one cancellation does not override the other cancellation.

Note: All cancellation reasons are underwriting reasons except the non-payment of premium.

When the Enforce Cancel Date IF NonPay Cancel is Later Than UW checkbox is enabled, the Notice of Cancellation will:

  • Preserve Underwriting cancellation date whenever a Non-Pay notice is issued, IF the non-pay cancel date surpasses the Underwriting cancel date.
  • The Notice of Cancellation Non-Payment of Premium and Continuation of Coverage – NonPay notices will state:
    • Payment of premium does not override the Underwriting scheduled cancellation. If the Underwriting cancellation gets resolved, the system will revert the cancel date back to the original non-pay date.
    • Which case the Continuation of Coverage notice will specify reinstatement of underwriting cancellation does not override the scheduled Non-Pay Cancellation.