Servicing > Cancellation

Cancellation is used to complete a lost policy release form and to identify a policy that is pending cancellation. When canceling policies, the coverage effective date will update to the date entered on the servicing screen.

To Enter a Cancellation

1. On the Primary menu, click SEARCH.
2. Click the Details icon next to the appropriate client.
3. On the Client menu, click SERVICING.

4. Select Cancellation.
5. Select an effective date for the cancellation by clicking the Calendar icon and selecting a date. The date can also be typed into the date box using the format: mm/dd/yyyy.
6. Enter a description for the cancellation. This description will be displayed in the action Description area.
7. Enter additional notes to be displayed in the action Memo section.

8. Select the Method of cancellation:

• Flat: The cancellation effective date is the effective date of the policy, without any premium charged.
• Short-Rate: The cancellation effective date is mid-term; the earned premium changed is more than the pro-rata earned premium.
• Pro-Rata: The cancellation effective date is mid-term; the earned premium is calculated only for the period coverage was provided.

6. Select a policy for the cancellation. The Generate Cancellation button becomes available.
7. Click Generate Cancellation. The underwriting tab is displayed. The cancellation header is displayed in red font and has a status of Pending Cancellation. The Coverage Term expiration date has been updated to the date entered on the servicing screen. The Coverage Term indicates the dates that the coverages on the policy are effective, therefore, on cancellations the Coverage Term expiration date is the effective date of the cancellation. The Policy Term will remain unchanged as it indicates the policy term.

8. The cancellation form is available for completion in the navigation tab to the right of the screen.  Complete the form as described in the Marketing > Working with Forms topic. 
9. The cancellation action created will default to a status of Closed and the due date will default to the effective date of the cancellation.  Complete the action as described in the Actions topic.

To Navigate to a Pending Cancellation

1. On the Client menu, click POLICIES.  This will display all in force policies for the client in summary view.  The pending cancellation will display with red font.

Or

2. On the Utility menu, click HOME.
3. On the Home menu, click CANCELLATIONS.
4. The pending cancellation will be displayed on the CANCELLATIONS link of the Home menu until the cancellation is either posted or aborted. The [Show] filter can be used to narrow or broaden the list of policies that are in a Pending Cancellation status.

Posting a Cancellation

1. On the Home menu, click CANCELLATIONS.
2. Click the 2nd Details (white) icon of the appropriate client.
3. Click the Post Cancellation link on the Navigation Toolbar.

4. Choose the Status (reason for cancellation) from the list and enter any applicable notes.  The default options are Canceled by Agent, Canceled by Carrier, Canceled by Insured.  Agency-specific reasons (i.e. "Canceled for non-payment") can be added in Setup > Actions.
5. Click Save.  The policy header will be displayed in a gray color; the cancelled policy is sent to history.

To Access a Cancelled Policy in History

1. On the Client menu, click the POLICIES > history tab. The history summary screen is displayed.
2. Click the Details icon:

Tip: To view the cancellation date, on the navigation tab, click the "+" next to Cancellation(s).

Reinstate

Reinstate is used to restore the cancelled policy back to its original state with no lapse in coverage.

To Reinstate Coverage

1. On the Primary menu, click SEARCH.
2. Click the Details icon of the appropriate client.
3. On the Client menu, click POLICIES.
4. Click the history tab.
5. Click the Details icon of the appropriate policy in history to be reinstated.
6. On the Navigation Toolbar, click Reinstate.

7. A dialog box will be displayed. Click OK to reinstate the policy.
8. The policy header will turn blue and the status will show Reinstated.

Rewrite

Rewrite is used when a revision needs to be made to a policy in cancellation status, say for example a lapse in coverage or a new carrier.

To Rewrite a Policy

1. On the Primary menu, click SEARCH.
2. Click the Details icon of the appropriate client.
3. On the Client menu, click POLICIES.
4. Click the history tab.
5. Click the Details icon of the appropriate policy in history to be rewritten.
6. On the Navigation Toolbar, click Rewrite.

7. The policy header will turn to a wheat color and is placed into a marketing stage.  Complete the marketing process as described in the Marketing > Marketing Underwriting topic.