BROWSE

Cancellation Provision Clause

What is 'Cancellation Provision Clause'

It is a provision in an insurance policy that permits an insurer or an insurance company to cancel a property and casualty or a health insurance policy at any time before its expiration date. Life insurance policies do not contain cancellation clauses, and while health insurance policies contain cancellation clauses, the clause does not allow the insurer to cancel the policy.

Explaining 'Cancellation Provision Clause'

Generally, a cancellation provision clause requires that whenever a party chooses to cancel the policy, that party must send a written notice to the other one. The insurance company is also obligated to refund any prepaid premium on a pro rata basis. For example, if the insured paid premium for three months and chose to cancel the policy at the end of the second month, the insurance company is required to calculate the premium that applies to the last month and refund it to the insured party.


Further Reading


Cancellation strategies in commercial real estate leasing
onlinelibrary.wiley.com [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Abuse of Circumstances as a Reason for the Cancellation of Financing AgreementsAbuse of Circumstances as a Reason for the Cancellation of Financing Agreements
www.um.edu.mt [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Determinants of corporate leasing policyDeterminants of corporate leasing policy
onlinelibrary.wiley.com [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

When is compensation payable for breach of a stabilisation clause? The case for the cancelled mining development agreements in ZambiaWhen is compensation payable for breach of a stabilisation clause? The case for the cancelled mining development agreements in Zambia
repository.up.ac.za [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Unpacking the Cancellation of Indebtedness Income Doctrine: Towards Economic Reality-Based TaxationUnpacking the Cancellation of Indebtedness Income Doctrine: Towards Economic Reality-Based Taxation
heinonline.org [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Changing Leases into Investment-Grade Bonds: Financial Alchemy and Cost Reduction in Real Estate FinanceChanging Leases into Investment-Grade Bonds: Financial Alchemy and Cost Reduction in Real Estate Finance
www.aresjournals.org [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Contracting with spatial externalities and agency problems The case of retail leasesContracting with spatial externalities and agency problems The case of retail leases
www.sciencedirect.com [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Retail leasing: the determinants of shopping center rentsRetail leasing: the determinants of shopping center rents
onlinelibrary.wiley.com [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …

Bankruptcy costs and the financial leasing decisionBankruptcy costs and the financial leasing decision
www.jstor.org [PDF]
… Similarly, we sort the leases by their provision of a cancellation clause … A downsizing dummy is created for the 15 leases that contain a downsizing clause and no cancellation clause … The data are provided by CB Commercial, Inc., and the vacancy rate is matched with the leases …



Q&A About Cancellation Provision Clause


What does pro rata mean in this context?

Pro rata means on a proportional basis.

Who can cancel the policy?

The insurer or insurance company can cancel the policy.

If I want to cancel my car insurance , what should I do ?

You need to send written notice of cancellation and also pay for all remaining premiums due under your agreement .

What is a cancellation provision clause?

A cancellation provision clause is a provision in an insurance policy that permits an insurer or insurance company to cancel the policy at any time before its expiration date.

When would I have no right to get back my money after canceling my car insurance ?

You have no right if you are canceling because of non-payment of premium .

Can life insurance policies contain cancellation clauses?

No, they do not.

Can health insurance policies contain cancellation clauses?

Yes, they can.

How much of the prepaid premium will be refunded if you choose to cancel your policy early ?

The amount of refund depends on how much of the term has been used up by you when you canceled your policy early .

Is there a difference between canceling and terminating a contract?

Cancellation implies that one party chooses to end the contract while termination implies that both parties choose to end it.

Leave a Reply

Your email address will not be published. Required fields are marked *