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Cancelable Insurance

What is 'Cancelable Insurance'

This is insurance that may be canceled, at any time, by the insured party or by the insurance company. Aside from life insurance, most insurance policies can easily be. If the insurer cancels the policy, it must first give notice and must also refund prepaid premium on a pro rata basis.

Explaining 'Cancelable Insurance'

Before canceling an insurance policy, the insured party must make sure that he or she has replacement insurance coverage that is already confirmed. If there is no replacement coverage, the insured party can go completely uncovered for a period of time. One good reason for making certain of replacement coverage is that the insured party could face a situation in which certain medical conditions that developed during the prior health insurance coverage are excluded from coverage under the new insurance as "preexisting conditions." This is why it is essential to thoroughly research a new policy before the old one is canceled.


Further Reading


Trade credit insurance: operational value and contract choice
pubsonline.informs.org [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

… Incurred Loss to Current Expected Credit Loss (CECL): A Forensic Analysis of the Allowance for Loan Losses in Unconditionally Cancelable Credit Card Portfolios… Incurred Loss to Current Expected Credit Loss (CECL): A Forensic Analysis of the Allowance for Loan Losses in Unconditionally Cancelable Credit Card Portfolios
papers.ssrn.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

Home equity insuranceHome equity insurance
link.springer.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

The market pricing of disability income insurance for individualsThe market pricing of disability income insurance for individuals
www.sciencedirect.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

Valuation Of The Embedded Option In A Non-Cancelable Lease: Theory And ApplicationValuation Of The Embedded Option In A Non-Cancelable Lease: Theory And Application
clutejournals.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

Case of trade credit insuranceCase of trade credit insurance
books.google.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

The investment opportunity set and corporate financing, dividend, and compensation policiesThe investment opportunity set and corporate financing, dividend, and compensation policies
www.sciencedirect.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …

Financing the newsvendor: raising the loan limit by insurance contractFinancing the newsvendor: raising the loan limit by insurance contract
link.springer.com [PDF]
… TCI can be used to insure a single supplier–buyer transaction, which this paper focuses … In our paper, once the insurance contract is in place, the two contracting parties … First, because cancelable contracts involve recourse to updated information, the risk- shifting behavior may …



Q&A About Cancelable Insurance


What is insurance?

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of contingent or uncertain loss.

Who has to give notice before canceling an insurance policy?

The insurer must give notice before canceling an insurance policy.

Who provides insurance?

An entity which provides insurance is known as an insurer, an insurance company, an insurance carrier or an underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.

When should you make sure that you have replacement coverage in place before canceling your current coverage?

You should make sure that you have replacement coverage in place before canceling your current coverage if there is no replacement coverage, you could go uncovered for a period of time. One good reason for making certain of replacement coverage is that certain medical conditions developed during prior health care may be excluded from new policies as preexisting conditions. This means it's essential to thoroughly research a new policy before old one is canceled.

What is cancelable insurance?

Cancelable insurance is a type of insurance that can be canceled at any time by the insured party or the insurance company.

Who gets refunded if the policy is canceled?

The insurer must refund prepaid premium on a pro rata basis if it cancels the policy.