We've introduced a new self-service feature that gives you the option to cancel your client's Tenants policy.
If cancellations are processed and become effective prior to the inception or renewal date, they will be flat-cancelled. A short-rate cancellation fee will apply if the cancellation is processed on or after the policy's effective date.
Here’s everything you need to know about cancelling your clients policy:
Related Definitions:
- Flat-rate cancellation - A flat-rate cancellation occurs when a policy is terminated before its inception or renewal date, and the coverage period has not yet commenced. In such cases, there will be no earned premium, and any premiums and fees charged will be reimbursed.
- Short-rate cancellation - Short-rate cancellation is the termination of an insurance policy before its scheduled expiration date. The earned premium is calculated based on the R7 Cancellation Table, which can also be found in your policy wordings. Please note that in the event of a short-rate cancellation, transaction fees will be fully retained.
Step 1: Select the Tenants policy you would like to cancel by clicking ‘DETAILS’:
Step 2: Once you’re in the Policy Record, click the arrow next to the ‘Select Action’ drop-down menu and select ‘Cancel Policy’.
Step 3: A window with the prompt "Are you certain you want to cancel the policy?" will display on the screen. Select the date you would like the cancellation to take into effect and the reason for the cancellation. Keep in mind that depending on when the policy is cancelled, a flat-rate or short-rate cancellation will apply. Refer to the beginning of this article for the definitions of each term.
Step 4: Once the cancellation date and reason have been selected, the fields will auto-populate and show a positive or negative Outstanding Balance. If the balance is negative, it indicates that the client will receive a refund upon cancellation. A positive balance signifies an amount owed upon cancellation.
Please Note: If there is an outstanding balance upon cancellation, and the payment method on file fails, the cancellation will not be processed. You can update the payment method by selecting PAYMENT INFORMATION on the left hand side (see image below). After updating the payment, you may proceed to initiate the cancellation of the policy.
Step 5: Upload a Signed Cancellation Form and select CANCEL POLICY on the bottom right.
Step 6: Once your policy is successfully cancelled, you will be able to confirm the status by looking at the Policy Record Details on the left side of the screen.
