Definition of "Notice of cancellation clause"
Pat Davis, Real Estate Agent
Century 21, J.W. Morton
- A notice, usually in writing, in which notice of termination is given by one individual or business to another. It is pursuant to a cancellation provision in a contract to forestall future liability.
- in insurance, a notice given between an insurer and a reinsure or an insurer and an insured of the termination of a contract or policy at the time of renewal, or, in the latter case, for nonpayment of premium payments. A notice of cancellation can also be issued for a current policy when a renegotiation of its terms is desired. The cancellation of insurance on a home, apartment house, or office building is a serious matter.
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