Got a Newbie Question Policy Cancellation

[iiinycboi]

so i got a policy that is effective 12/14/2011 to 12/14/2012

insured is unhappy with carrier and wants new policy effective 1/14/12-1/14/13

can you cancel policy's effective 1/14/12 30 days later or must be canceled before?

want to make sure the inspection and everything goes thru before canceling previous but dont want them to get charged for 2 months instead of 1

 

[djs]

???????

New York may be different, but in CA, you can cancel any day you want. The premium will be prorated for the days the policy is in effect (potentially shortrated).

For billing questions, you would have to actually talk to the carrier. You'll have to make sure there isn't a minimum earned premium of 3 months, etc, before you can answer this question.

Dan

 

[iiinycboi]

yes, what i meant was

can i put in cancellation date effect 1/11/12 and send it in 30 days later and have them short rate it to 1/11/12 and not 2/11/12 (30 days later)

i know for renewals i can send them in 45 days after the renewal date and still have the cancellation date effect 45 days prior, but i never done a change in the middle of the term of it.

basically the question is, how long do i have until i cant cancel effective date 1/11/12?

on or before 1/11/12?
or
after 30 days

(if i send in a policy cancellation on 2/11/12 and write in the effective date for cancellation 1/11/12 which date will be the day they cancel? if there is a policy in effect from 12/11/11 to 12/11/12 and paid in full)

 

[djs]

I think I understand....

Most carriers will allow you to cancel from now till somepoint in the future (i.e., no retroactive cancellations). Some might give a day or 2 of leeway for retroactive stuff. This is if you process the cancellation.

Most of the carriers I work with will provide a much bigger window if I can show proof of other insurance, they will cancel back to the day that policy became effective. Not everyone will do this though.

The real issues you have is whether there is a minimum earned premium 'gotcha' on the current policy. Cancelling inside a month can be a problem sometimes. The other issue is whether (usually by state law) the insured has a review period time on the policy where cancellation cannot be shortrated. This might be the case if the policy was issued other than as applied for and a window is given to accept or reject the changes (and cancel the policy).

I don't do business in New York, so I don't know the rules there. Also, carriers are different from one to another. Call the billing department and ask. You don't have to give them the policy number if you don't want, just ask the question.

Dan

 

[iiinycboi]

Thanks DJS, i understand now

 

[NCAgent]

yeah in NC it is illegal to double-insure someone. So the insurance companies have to make it so effective dates make for a continuous coverage time line, not with an overlap in coverage.

Allstate will do backdated endorsements for the same thing in all 50 states as far as I know (or at least 25 of them). Just show proof of insurance.

 

[iiinycboi]

I called the billing department apparently I can send in the cancellation letter one month after the effective cancel date as long as I prove replacement