What Does Cancellation Mean?
Cancellation, in the context of insurance, is the termination of the insurance policy either by the insurer or the insured before the end of the period of coverage. A policyholder has a right to cancel their policy, although they are subject to limitations presented by the laws of his state. An insurer, however, may cancel a policy based on valid grounds, such as non-payment of insurance premiums, misrepresentation, or concealment.
Insuranceopedia Explains Cancellation
There are three common cancellation methods of cancellation: pro-rata, short-rate, and flat rate. Pro-rata cancellation refers to policy termination earlier than its maturity, either at the request of the insured or at the behest of the insurer. In this case, a return premium factor is computed based on the remaining days of coverage less the total number of days in coverage period and multiplied by the premium.
Short-rate cancellation occurs when the insured requests the termination of the policy. In this case, the unearned premium is returned, less a 10% penalty. Finally, flat cancellation takes place when termination occurs on or before the policy start date. In such cases, no penalty or premium is charged.
If an insurance policy contains a cancellation clause, either party may legally cancel the insurance policy before the end of the period after sending a written notice to the other. Depending on the grounds of cancellation, the insured may or may not receive return premiums. If cancellation is based on intentional misrepresentation or concealment, the insured may not be able to receive premium refund.
FAQs
1. : the act or an instance of canceling. The cancellation of the game was due to bad weather. 2. : something (such as a hotel room or a ticket) made available by the canceling of an arrangement.
Which is correct, cancellation or cancelation? ›
Cancellation (double “l”) is a noun used to refer to an act or instance of canceling something. This is the standard spelling in both UK and US English. While “cancelation” (one “l”) occurs occasionally in US English, it's rare and best avoided.
Is canceled spelled with one L or two? ›
One L or two? While both canceled and cancelled are acceptable for the past tense of cancel, the version with one L is more common in American English, while the version with two L's is more common in British English.
What's another word for cancellation? ›
abandoning abolishing canceling invalidating overruling quashing recalling retracting reversing revoking withdrawing.
How do you spell cancellation in Canada? ›
So, cancel becomes cancelled, cancelling, cancellation, and canceller. This pattern holds true in Australian, Canadian, and Irish English, as well as other forms of English used outside the US.
Is it cancellation or cancelation in England? ›
This rule, which is primarily observed in British and Australian English, involves doubling the 'L' when adding a suffix to a word ending in 'L'. For instance, 'cancel' becomes 'cancellation'. However, American English typically prefers a single 'L', turning 'cancel' into 'cancelation'.
Is it GREY or gray? ›
Gray and grey are both common spellings of the color between black and white. Gray is more frequent in American English, whereas grey is more common in British English.
What is the double L rule in spelling? ›
For words ending in a single “l” after a single vowel, double the “l” before adding a suffix, regardless of accent. e.g. cancelled, traveller, signalling, metallic. If a word of more than one syllable ends in a “t”, preceded by a single vowel, and has the accent on the last syllable, then double the final consonant.
How do you spell "I canceled my appointment"? ›
“Canceled” should always be used as the past tense of the verb “cancel,” but you don't need to remember any other specific rules when using the word.
How do you spell "cancelled" in AP style? ›
cancel, canceled, canceling
Spell with only one l. However, cancellation contains two l's.
noun. an act of canceling. the marks or perforations made in canceling.
What is the correct way to say cancelled? ›
Canceled or cancelled is the past tense of the verb to cancel. Both spellings are correct; Americans favor canceled (one l), while cancelled (two l's) is preferred in British English and other dialects. Canceling/cancelling and canceler/canceller follow the same pattern.
Is cancellation British or American? ›
The word “cancellation” refers to the noun form of the verb “cancel.” “Cancellation” with double “l” is in British and American English the standard spelling. “Cancelation” with a single “l” can be used in American English but is urged to be avoided.
How do you spell cancelling in the US? ›
So, which spelling should you use? The answer relates to the difference between American and British English. Canceling is the preferred spelling in American English, while cancelling is the preferred spelling in British English.
How do you spell cancelling in the UK? ›
In UK English, 'cancelling' (double 'l') is always used. In US English, both 'canceling' and 'cancelling' can be used depending on your preference, but 'canceling' is the more common spelling.
