cancelable insurance definition

cancelable insurance

Policy that may be terminated either by the insured party or the insurance company (the insurer) at any time. Except life insurance, practically all types of insurance coverage is easily cancelable. If the insured cancels, the insurer will charge the higher premium rate (applicable to short-term policies) on the period already covered. If the insurer cancels, it must give the period of notice required in the policy and must refund prepaid premium on a pro rata basis.

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