Notice Of Cancellation Clause

Definition of "Notice of cancellation clause"

Provision in an insurance policy that permits an insured to cancel the policy and recoup the excess of the paid premiums above the customary short rate for the expired time. The clause also permits a company to cancel the policy at any time by sending the insured five days' written notice and repaying the excess of the paid premium above the pro rata premium for the expired time.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Ending a pension plan at the election of an employer or sponsor. The employer has the unilateral right to change or terminate a pension plan at any time. However, the termination must meet ...

Document used to sign up employees for plans such as salary savings, life insurance, or other employee benefits. ...

Peril that occurs when personal property of two or more people is mixed to such an extent that any one owner can no longer identify his or her property. ...

Insurance sold by a stock insurance company that is usually in the form of nonparticipating insurance. ...

Situation involving a chance of a loss or no loss, but no chance of gain. For example, either one's home burns or it does not; this risk is insurable. ...

provision in a CASH VALUE INSURANCE policy that an insured will receive the equity in some form even if the insurance is canceled. vested benefit to a retirement plan participant. It is ...

Policy that has many similar characteristics to that of the survivor-ship annuity in that the annuitant receives a predetermined monthly income benefit for life upon the death of the ...

Insurance company that is licensed by a state to market and service particular lines of insurance in that state. ...

Condition in which life insurance sales increase at a rate greater than the general rate of growth of the economy. As a society moves from an agriculture-based economy to an industry-based ...

Popular Insurance Questions