swiftrelief - Cancellation and cancellation fee

Cancellation and cancellation fee

This is the termination of a policy before it is due to expire. There may be a cancellation clause in a policy setting out the conditions under which the policy may be cancelled by notice. The period of notice could be anything from 48 hours to 3 months. If a policy is cancelled before the exprity date, the policyholder may have to pay a cancellation fee. Depending on how much of the policy is left to run, policyholders will be re-paid the balance of their premium, minus the cancellation fee.