Cancellation
Insurance Glossary
The termination of a policy before the end of its term, by either the insurer or the policyholder. State law limits when an insurer may cancel, commonly restricting it after the first 30 or 60 days to reasons such as non-payment, fraud, or a material misrepresentation on the application. A policyholder who cancels early is usually refunded the unused premium, sometimes reduced by a short rate penalty.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.