Industry Standards

[JHoward]

I think I know the answer, but I'm just curious:

If a policy holder calls his agent and tells him/her that he sold his car a month ago and wants his policy cancelled, will the carrier take the policy holder's word for it and backdate the cancellation or will the insurance company require proof of sale?

If I were the insurance company I would require proof of sale, but that's just me. How does it work in the real world?

 

[marindependent]

It depends on the type and kind and state of the insurance product. On the personal lines side though a month out is not a super long time to request it. Some insurers will want to see a proof of sale though.