Oct 30

How to Cancel an Insurance Policy – the Do’s and Don’ts

I want out! It has come time to cancel your insurance policy – how exactly is it done?  Is it as complicated as the policy wordings?  Well – No!  It is actually pretty easy!  Of course, it’s a simple conversation if you have an easy-going insurance broker, otherwise it might come with a bit of resistance.  As a policy holder, you have the right to cancel, so here is some simple advice on what to do and what not to do when canceling your policy.

Cancellation of insurance policies is a fact of the insurance business and from time to time, clients will ask me to cancel their policies – sometimes due to the fact that I have found a better insurance solution for their needs, other times because the solution that worked at a certain point in time, is no longer working for them and yet other times because they don’t need coverage anymore.

First, you have to know that the regulations are stacked in your favour – For an insurance company to cancel your policy; they have to have registered letters giving ample notice that they are going to cancel the policy, reason and – if you owe money – a chance for you to pay it back and continue along on your merry way.

If you are going to cancel the policy, there are several ways to get it done. Here is an ideal way and a non-ideal way to cancel your policy:

As a consumer you can cancel a policy:

a)  In writing – this is the absolute best way to cancel a policy (for you and your broker) – it should contain the following information:

  • Insured’s name(s) – the name of the people that are insured under the policy
  • The policy number – (may be different than the account number – depending on the company)
  • The company that is insuring you
  • The date you wish the policy cancelled
    For example: In consideration of the return of unearned premium to follow if any, I hereby request cancellation of   ABC Insurance Company Policy No. ABC1234 and any renewal thereof and hereby release the said Company from Month Day Year. Your name(s) would appear at the bottom of the letter underneath your signature(s).
  • All policy holder signatures – everyone listed on the policy needs to sign consent

b)  Stop paying your premiums – Does the job but NOT A GOOD IDEA!

Your policy will be cancelled but the aftermath will be different for the type of policy that you have, for example:

  • Auto & Home insurance – cancelled for non – payment: Not good at all to have on your record – may affect premiums in the future
  • Business insurance – cancelled for non-payment – Would you do business with someone who doesn’t pay you – insurance companies don’t look too kindly on businesses that don’t pay their insurance bills – it is hassle they aren’t fond of.
  • Life insurance – not paying your premiums is actually one of the few ways your “in-force” policy can be cancelled – still it is better to cancel in writing – it really gives you a chance to think about why you are cancelling and perhaps to speak to a representative to get advice.

One thing you definitely cannot do is request a change or cancellation of your policy(s) by leaving a message on your broker’s voicemail – they won’t accept it for several reasons including the fact that we cannot verify that it is indeed you that is leaving the message.

When cancelling your policy always ensure that coverage is in place first to replace the insurance policy that you are replacing (if you are replacing it).  You definitely don’t want to be caught without coverage!

So remember, like anything else in life – put it in writing and send it via fax, mail, or email and make sure to get a delivery receipt.  Make sure you address the notice to your broker and things should proceed smoothly.

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  1. kevin

    I have just purchased my first home. Recieved a quote for home insurance and agreed to the policy.
    When the policy came in the mail on or about closing day January 15 2014, the amount was $28 more per month than quoted, and my girlfriends name was not listed on the policy. I am not impressed and think I may cancel and move on. Is there a time in the first 14 days where you can cancel without penalty?
    Or are those two errors a valid reason for cancelling without penalty?


  2. Claudio

    you can cancel for any reason you choose – if you don’t like the person’s demeanor or even their mustache : ) .

    I would check to see if there are cancellation fees (which there will be) and i would first obtain a new quote. To be perfectly honest, i would stay on for at least a year. You are a new home owner and need the insurance experience in order to get cheaper rates.

  3. Anonymous

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  4. anonymus

    Our original homeowner policy expired – my husband shopped around and found one that was cheaper than the previous, so we took it. We are now being harassed by the previous agent who is demanding we send payment of $500+ in order to cancel a policy we did not agree to…… does this seem right?

  5. Claudio

    It would depend on the terms of your insurance contract. Did it renew automatically and for how long? if he can justify it, while it may not be right, it could be legal.

  6. Chris

    Hi, I cancelled my life, critical illness and disability insurance policies a year ago. Is it possible to get the money I paid to the companies back?? I didn’t ask about this when cancelled but they got about $4000 of my cash!

  7. Claudio

    it totally depends on the terms in the policy and how long it was in force. I cannot answer that question here.

  8. Dan M

    Canadian, Nova Scotian Resident. I had two home and auto(1) insurance policies through a single, well known, broker. One property and car insurance policy were combined under one insurance company and my other property under a separate insurance company. The home under a separate insurance company was insured and paid regularly with no hiccups for over 5 years, the auto even longer, and the second property only a year but auto was combined with it when it was setup. Approx. 7 months after setting up a new home insurance policy for my newly purchased, second property, my insurance company contacted me to inform that there could potentially be savings by putting both properties and auto under one insurance provider and that they would look into it and get back to me.

    I had paid my insurance in advance for both properties and auto, approx. 3 months before the anniversary date, my payments for all three stopped for 3 months, then a large lump sum was taken from my account. I contacted the broker to ask what the changes were and why a large lump sum was withdrawn to which I was told both my properties and auto were now under one insurer and 3 months worth of payments were extracted. The 3 months they charged for were for months I had already paid in full for and the broker informed me I would receive credit back for the overlapping payments as they had gone ahead and setup all my policies under one provider (without asking permission or notifying me aside from saying they “would look into it”). I never received compensation for those 3 months already paid for and 4 months after the lump sum coming out of my account (and the new monthly amount reflecting a consoldiated payment for the three policies) the insurance company again contacts me to say I owe the full amount for one of my properties. The reason they stated was because my insurance for that property was cancelled (with no claims or missed payments on either property or auto) and even though the policy is cancelled the broker still pays the insurance provider to maintain coverage.

    Now, I try to stay fairly educated with processes and procedures but this has totally confused me. I paid twice for insurance coverage for 3 months, received no compensation and 4 months after apparent changes I’m told something completely different about the changes that were made to my policies and asked to pay the full annual amount for a home insurance policy. I have told the broker I did not request that one of my home policies be cancelled, was informed everything was consolidated, had a consistent payment record with no claims filed for any of my policies, and to indicate that I owe the full amount for home insurance after being a client for 5 years was absurd and if it was cancelled I would find insurance coverage elsewhere. This resulted in the broker informing me I would be responsible for paying for a years worth of cancelled home insurance and if I refused to pay it they would involve a collection agency.

    This seems like a highway robbery bully tactic that I’m not giving into and questioning what can be done without paying out more money to involve a lawyer. Any suggestions to this situation would be greatly appreciated (As I have not been able to find a similar situation to this through any forums on google anywhere). Thanks in advance.

  9. Brix

    Our broker was informed that I would cancel my policy due to I cannot continue paying. She said I have to make a written request to cancel the policy stating the real reason, so I did. and return all the documents she gave. Within 1 month, she informed me that our insurance policy cannot be cancelled and I should pay the monthly dues. What can I do about this?

  10. Jessica

    The policy with my current company expires July 19 (tomorrow). I’ve already obtained replacement insurance with another company as of this date. I didn’t send the cancellation letter until Wednesday, and it was delivered today. Should that be all I need to do to cancel? Their website said to use my online account to request a change to my policy. Should I do that as well or is the signed letter sufficient?


  11. Claudio

    Normally i would say that you have done enough but you still have time to do the online thing. I’d so it as well.

  12. Claudio

    sorry for the delayed response, I haven’t had the opportunity to go into this. I would check the policy wording itself to see if there is something called “minimum retained premium” or retained premium.

    That will tell you what is refundable.

  13. Claudio

    sorry for the late reply. That seems odd on many levels. Not sure about the system there but under privacy laws, doesn’t your broker have to consult you and get approval for making changes to your policy like that?

    Hopefully you have all the documentation?

  14. Anne

    I just lost my home insurance due to non payment (I’m unemployed and my boyfriend is on disabilty) and I’m starting to panic because the insurance company – Intact – said that so one will insure me and my broker said that they might be able to find a company but it will cost me $$. I was paying 175 and fearing the worse. Also, I was told that I can lose my mortgage as well…help!!

  15. leroy

    i found a new cheaper auto insurance and now want to cancel my current one which I have been on for 7 months, do you think I will be charged for cancelling my policy.

  16. Claudio

    i don’t know what your policy says but you should be okay Remember that you lose any home and auto discounts if you move mid policy.

  17. Joyce

    I have had my auto insurance with intact and my car has developed mechanical problems with a huge repair bill.

    I have decided to get rid of the car and purchase a new one.
    I have gotten a really good quote from belair direct for the new car so i need to cancell my policy with intact mid-term.

    Just spoke with my broker to find out what the cancellation charges are and she goes.. I think its about one month worth of premium…(I pay $366/month!!!)

    So I call intact to find out what the cancellation fee is and i get told that they don’t deal with the public! they only deal with brokers.

    Now I’m stuck on this.
    How much is too much when it comes to cancellation fees mid-term? and what are my options.
    switching will save me $500 dollars plus give me much more coverage.

    I just need your advice on this.
    btw: broker is Mitchell & Whale Insurance Brokers.

  18. Claudio

    well firstly i’m not sure if you know but Belair is Intact insurance.

    Cancellation depends on how far into the policy you are. Premium, although spread monthly for our convenience, is earned by the insurance company much faster than that.

    Without knowing more details, i would have to defer to the broker who is simply calculating the estimated amount owing from the information they have.

    Auto insurance is very regulated and straightforward.

    when you spoke to Belair, did you quote get approved or was it simply done online? as i said, Belair is Intact insurance.

  19. Claudio

    While i commented privately on this, i wanted to make a comment on the site. When you have an insurance policy, it is so important to keep track of the payments. The companies do have to give you notice if you missed a payment and allow the opportunity for you to make it up (usually they will withdrawal it at the next scheduled withdrawal date).

    When canceled for non-payment, several things happen:

    a) its noted in your file – the insurance industry is small, it always comes out (in ontario, your auto policy insurance record shows cancel for non-pay)
    b) collections – if you owe money, they insurer or broker will do what it can to recoup the funds
    c) getting a new policy, you will have to declare why the last policy was canceled. You may be required to pay the full premium up front for a couple of years.

    if you are struggling to pay the bill, cancel the coverage and sort out your finances (unless its auto insurance which requires mandatory coverage)

  20. Lori

    We have been with the same house insurance company for several years. When it came up for renewal this spring, the premium quoted rose quite a bit. We were also contacted by an independent contractor, telling us our insurance company had asked her to do a high value home inspection (our insurance company never told us they were going to do this). Still we agreed to both the premium and inspection.

    When completed, the inspection report recommended a front stair railing. It was a recommendation, not a requirement. That was the only “repair” listed on the report. A month later, our premium jumped again – by $50 a month. This was after we had renewed.

    This week I got an email from the home inspection company, asking if we had done the “required” handrail.

    My two questions are: how can a premium change AFTER you have signed and agreed to a certain price for the term, and how can you change a recommendation to a requirement, also mid-term? At this point, this contract seems to be a contract only on our side; the insurance company seems to be able to change any of the terms whenever they feel like it, regardless of what was agreed on.

  21. jim

    Hi Claudio,

    I recently meet a problem with CAA. Last year, I had a one year car insurance with CAA and it expired on Aug 1st. In July, I received the reminder letter from CAA for renewing my insurance. But I found out that they raised my insurance payment too much. So I changed my insurance to the other company. Now the CAA charge me about $200, because I did not tell them I would not continue to get the insurance from CAA. They said their system automatelly renewed my insurance for one more year. If I cancel the insurance now, I should pay for it.
    What should I do for this situation please?

    Thank you so much!

  22. Claudio

    Hi Lori,

    Sorry for the late response. To answer your questions, yes premium can change. The premium quoted is often called an estimate. With change in risk, often comes change in premium. There could be many factors for this. One common factor is that a mid-term change causes a premium spike. That is simply because there is a change in premium for underwriting reasons (risk changes) and the additional premium isn’t spread out over 12 months like the initial premium rather, it is spread over the remaining months of the policy period.

    If you would like us to have a look at it in more detail, please contact me closer to renewal and we can asses for you.

  23. Claudio

    You pay the $200?

    No insurance company is a mind reader and they are mandated by law to maintain coverage unless on defaults on payment, one’s risk class changes significantly or one advises them in writing with proof of new coverage.

    You are in the wrong here my friend. Try to argue that coverage was in place and prove it with a policy (maybe they will not charge the $200) but otherwise, you should pay them because they will send it to collections.

  24. David Miller

    Hi Claudio,

    I happened to find your blog in my search for ‘termination for non-payment of premium’. I have quite the long story but I will sum it up as best I can. Not sure if you can comment or provide any assistance in my situation but at least if I bring this to your attention it may help others who read your blog from getting caught in the same situation.

    First off I have been a customer of Cooperators insurance for the past 15 years. Within the past 3 years I moved everything over, business, home and auto policies (4 total). My renewal for my business insurance was sent in August of 2013, my renewal for auto was sent in September of 2013. Both policies were roughly the same cost so I remembered paying the auto policy but I was mistaken, it was the home insurance I had paid. My renewal was NOT sent by registered mail and I was NOT sent any kind of reminder letter nor was I contacted by phone to be advised that my auto policy had lapsed. My auto policy expired on September 17th and on October 18th my wife was hit head-on by a drunk driver on the highway at 8:00 in the morning. She is alive but not in great shape. The drunk driver suffered no injuries. The drunk driver had no insurance, license or registration… probably hasn’t had it for years. When I reported the accident to Coop they informed me that I didn’t have coverage at the time of the accident. I was obviously shocked as I was never sent a termination letter or anything informing me of the missed payment. I pay annually by the way, not on a monthly pay plan. I live in the Yukon Territory and there isn’t any underinsured/uninsured motorist fund here. Basically this ‘accident’ has cost us thousands upon thousands of dollars to date… costs will keep on mounting, especially if my wife cannot return to work.

    Cooperators is insisting that the ‘offer to renew’ was only an offer and that it states on the policy that if payment is not received then the insurance is void. In your experience has this ever happened before? You stated above that “…for an insurance company to cancel your policy; they have to have registered letters giving ample notice that they are going to cancel the policy, reason and – if you OWE MONEY – a chance for you to pay it back and continue on your merry way.” Well, for my situation this is not the case! Or is it and they are just trying to put me off?? I have never missed a payment before, I have had auto insurance in effect since 1993 and I have NEVER made a claim in all this time. I have a 840 credit score and now I am being told by other insurance companies that I am not eligible for their products as I have had a history of ‘termination due to non-payment of premium’. Now I’m stuck staying with the same damn insurance company that has practically ruined my life. This is turning into an absolute nightmare, I would never wish this on anyone else.

    I would appreciate any comments/suggestions that you may have for me.

  25. Claudio

    first of all, as someone who was hit but a driver under the influence whilst driving, my heart goes out to your wife. I cannot speak to the Co-Operators rules and you may have to seek legal counsel for the damages that you are incurring.

    I do know that the renewal doesn’t have to be sent my registered letter but cancellation of a policy does (at least in Ontario). It makes no sense that they would take such a stand and with all the business that you have with them, it shocks me that no one followed up with you.

    My sincere advice – consult an insurance lawyer in your area who can properly advise you.


  26. RoseMarie Davies

    My late husband had an Insurance Policy, and I am now attempting to Cancel it. I did originally put in a claim, and sent them the information they requested, which the insist they never received. After 2yrs., I have told them I`m not putting in a claim anymore, and I just want them to cancel the Policy period. They keep insisting that I have to fill out the Claim forms.Is there anything I can do?

  27. Claudio

    Firstly, my condolences to your loss. My sincerest suggestion is to re-complete the claims form and submit it by registered letter so that someone has to sign off that they received it and you get confirmation of that receipt.


  28. Tom

    Question: I had a tanning business, which I had insurance on the tanning beds. The policy I had through my agent does not auto-renew. I closed my business and sold the tanning beds July 1st, 2014. The insurance policy lapsed June, 2014 and we were not notified in writing that the policy was not renewing, nor that there was a lapse in coverage. Aside from that, the business is now closed. The insurance agent is demanding that I sign a Lost Policy & Cancellation Form, essentially indicating it is my fault the policy didn’t auto-renew. The fact is, I still have the original, un-executed copy of the insurance policy, that I choose not to renew because of selling the tanning beds and closing the business. I am not inclined t pay for several reasons:
    1. I was not aware the policy didn’t auto-renew and the agent sent me the original application to renew the policy that expired June 2014, which I did not execute or provide back to them (FYI they sent me this renewal application in July demanding immediate payment);
    2. I closed the business and no longer have the tanning beds.

    Am I correct not to pay? Just looking for direction. They want like $600 from me and the monthly policy is $190. The previous policy expired on June 2, 2014 (and we weren’t aware the policy didn’t automatically renew until they sent an urgent email demanding immediate payment and to sign a new renewal form to start a new policy). We weren’t aware until they sent us the application in the mail, hi-lited in areas where I need to sign.

    Any suggestions would be helpful.

  29. Claudio

    In my experience, a policy that requires an application for renewal cannot be renewed without signed instruction from the insured.

    The $600 is likely the minimum retained premium (non-refundable portion of the premium) that usually goes into effect as soon as the policy starts. If you did not give instructions to renew and didn’t sign the renewal application, I cannot see the leg that the broker is standing on.

    personally, they likely ordered the renewal and now owe the insurance company the $600. They likely also canceled for non payment.

    I understand that the broker was looking out for you but in my experience, you never renew a policy that requires a signed application without that signed application or at least written instruction to proceed by the insured.

    Its a tough situation without seeing all the communication emails and documents. If the policy doesn’t auto-renew, then someone had to order the renewal. If it wasn’t you, it was them. They are responsible for the payment to the insurer and would have to take you to small claims to claim it.

    if the policy is an auto-renewing policy and the form is just once requiring updated information, it is your responsibility to notify the company of your intent to non-renew.

    In the end, this just shows a serious breakdown in communication.

  30. Tom

    Thanks so much Claudio – I have been thinking those very thoughts as you described – I just needed some reassurance from someone qualified. I appreciate your expeditious reply and guidance in this regard.

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  32. Tom

    Claudio – would you have a brief moment whereby I could connect with you via phone? If this is not possible, I just wanted to provide you some supplementary information in relation to my previous post to you dated September 18, 2014.

    The Broker has contacted me, after I had prepared a well-written letter of defense essentially (justifying my position in this regard) with accompanying Appendices for their consideration.

    This is the first email I received from the Broker (today):

    I received your email. I appreciate your comments however I don’t agree. I have enclosed a copy of how the insurer can terminate an insurance contract. Basically in order for the policy ” not to be renewed” as you put it we need the form signed that we sent you (the one titled “Lost Policy & Cancellation Form). I have spoken with XXXXXX Insurance and this was their email back to me:

    If you can’t get the insurer’s signature, I would suggest a registered letter, I can give a flat on the basis of this letter I think, but it doesn’t mean that AVIVA won’t go after the amount owing on the registered letter.

    Let me know how you want to handle it.”

    And then I received another email right after titled “Statutory Conditions (Applicable to all Provinces except Quebec, Alberta and British Columbia) with pen drawing my attention to section 5 “Termination” subsection 2 (a) and (b):
    “Hi: I have changed the form to show that the policy expired on June 2, 2014 and the cancellation is the same date. So basically it confirms for you that the policy wasn’t renewed. Kindly sign and return so that we can have this dealt with for you.”

    Just want to know if it is safe to sign the cancellation and lost policy form (even though there is/was no policy to renew as it expired June 2, 2014 and it was in fact not an auto-renew policy and we did not sign it). I just don’t want to sign something, thinking I am acting in good faith on my part to apparently cancel something that should never have existed or by signing it does this in essence bound me to the terms of that form accepting responsibility for their error. I simply want this to be over and it appears this way on the surface, but I don’t know what to do? If you could provide me with some direction, I would be quite appreciative.



  33. Jane

    I called my life insurance company to cancel my policy but the company told me that if I will cancell it now I will pay a huge amount of cancelation fee since my maturity date is not until 30 months from now so I can only receive about 35% of my investment. I have been paying my life insurance for over 8 years .Is it worth waiting for..?Is there a guarantee ,though I am aware that there is no 100% guarantee with regards to investment. However, my main concern is will my investment would not drain until the maturity date if I decide to stop paying my monthly contribution and the investment would pày it instead…that’s my big concern if I should wait or just get the 35% rather than waitng another 30 months from now because by then there is no surcharges to the policy.

  34. Shawn

    So my wife and I have bought our first home. We went through a broker who was recommended to us through friends. He found us an insurer and we went with it. They sent us an inspector, who my opinion was not too experienced (didn’t have a ladder, didn’t even have a humidity meter). We then got her report and list of recommendations, all of which have to be taken care of by liscenced contractors, plumbers etc….I did renovations for years and had p[lanned to do most of the listed things my self as I refuse to pay an electrician to put a cover on a junction box (literally a 79 cent piece that has two screws and would take about a minute to insatall) basically as it stands, there are a god 2000$ worth of things that need to be done in order to get this list done the way they will accept (receipts), according to the stipulations I am not really covered for anything….Ive tried talking to my broker who is giving me the run around and so I want out. I want to find my own insurance and I believe ill go with my car insurance company and bundle everything…does all of this sound normal? how should I go about cancelling, making sure I am covered when I do?

  35. Claudio

    I’ve had clients with similar bad experiences with home inspectors. They seem particularly unyielding in this case. I cannot confirm what is covered and not but if you aren’t happy with the product and service, first obtain a quote from the other company prior to canceling.

    That company may send out inspectors again, so i would definitely complete the outstanding requirements properly. They are mentioned for your benefit as well as the insurer’s.

    Good luck!

  36. Claudio

    Hi Jane,

    Thank you for your comments. I have a question – are you using your life insurance policy as a means of investing money? There are far more appropriate vessels for investment that that. More information would be helpful. You can always email me at info@insurancehelp.ca

  37. Claudio


    It looks like they are doing what they can to ensure that the policy is terminated as per your wishes.


  38. Claudio

    thanks for your input!

  39. Thembisile F Ngcobo

    I like to cancell my both policy,that is funeral and legal due to my financial problem I can’t afford to pay

  40. Anonymous

    This blog was… how do I say it? Relevant!!
    Finally I have found something that helped me.

  41. Claudio


  42. Claudio

    okay, i don’t know what kind of policy you have but generally and signed letter of cancellation will work just fine.


    I have an insurance policy from INTACT through a broker, for the last 2 years. My present policy expires in May 2015. I felt they are charging too much. Last month I obtained a quote from another broker, who offered a much cheaper policy, that also from INTACT.

    Can I go ahead and purchase the policy from the new broker, without any penalty, because the new policy is also from INTACT? Also, can I file a company against the broker, who were overcharging me?

    Secondly, I bought a new car and is planning to sell the old car. The policy for the new car is from Intact from another broker. In this case also, will there be any cancellation fee for the old policy?

    Ragi Philip

  44. Claudio

    Great questions! I’m glad you brought this up and I am eager to answer this. It is so important to note that when giving information to a broker, it is vital that they quote the exact same thing. You are just proving that a quote and the policy can be 2 different premiums. There is clearly something missing from the second quote for the intact terms to be different. Intact’s rates don’t change from broker to broker and you can expect the premium to end up being the same. Further, they won’t allow you to cancel with one broker and move to another like that and personally, it doesn’t paint you in a good light with the insurance companies.

    In terms of your car, why on earth do you have it with two different brokers and both with Intact? You lose out on some discounts that way! Move the policies to 1 trusted broker and save money!

    When you close on the new car, you simply add it to the existing policy. when you sell the old car, you simply remove it. There should only be 1 continuously running policy.

  45. Teresa

    My mother has paid into a ‘funeral coverage policy’ for 13 years. Total paid is $5890.00 for a $5000.00 coverage at death. We called to cancel and were given 2 options. 1) Pay out of $1430.00 or 2) Maintain the policy and end payments and the beneficiary will receive $1840.00 at death.
    No where in the original policy documents can I find reference to cancellation terms. The table that was provided is very difficult to understand. When I follow the directions for determining payouts I get very different numbers than what was quoted.
    Do these numbers seem reasonable? The explanation was that because my mother lived longer than what the benefit of the policy was intended for, she gets penalized. If she continues to live for another 10 years she will have paid greater than $10,000.00 for $5000.00.
    Without cancellation terms being provided with the original policy is there any recourse for her?
    Thank you and your blog is very good!

  46. Claudio

    That’s a tough question to answer. You can send me the table at info@insurancehelp.ca and i can try to assist you in interpreting it.

  47. Elham Rakhshanifar

    In the statutory condition 5 of general insurance when insurer can terminate the insurance contract whithin 15days notice by registered mail or 5days written notice of termination personally delivered, if a loss occur at the day 6 , is that loss covered or not?

  48. Claudio

    your question is a little ambigious. 6th day from the notice or 6th day from the cancellation….the day after termination, there is no coverage thus loss isn`t covered.

  49. Andreas Siebert

    Hello. Can you advise me on something?

    I told my broker back in August to not renew my term life insurance because I got a better price somewhere else. He said he would take care of things…until two months later my wife said they withdrew two payments of $70.

    I phoned him and he said that he told me I needed to sign in a letter to cancel. I did not recall this.

    I called his brokerage company. His brokerage than told me that they need a written request and they would try to get my money back from Industrial Alliance.. I faxed them the letter and waited for a response. One week I wrote the brokerage head office a complaint and soon I got a response from the small brokerage saying the policy was cancelled but did not mention trying to recovering my funds. All they said was that the rep told them that he had emailed me a letter telling me to cancel in written form…yada yada.

    I am out 150$. I never signed to renew. Small claims court?

    Any suggestions.


  50. Claudio

    Personally, If you were simply told from the onset to sign and date the cancellation letter, all this would have been avoided. The insurance company would cancel the policy effective the signed letter’s date. Their duty is to hold coverage until that date.

    Small claims court? Is it really worth the effort for $150?

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