Legacy Cancellations and Withdrawals

Warning

The functionality described in this topic is in “Legacy” status and will be deprecated in the future. We recommend you use the newer Cancellations and Reinstatements functionality.

Overview

At any point after a policy has been issued, a policy can be canceled or withdrawn. A withdrawal is the same as a “total cancellation,” which might be done during a trial period or if a policy is issued in error. Both represent terminations of the policy contract.

Cancellations and withdrawals change the effective end time of the policy contract. Any coverage that extends past the new end date will be shortened to match the new policy end time. Cancellations may be processed retroactively. Also, policies may be canceled multiple times, making the effective date earlier each time.

Upon cancellation, premiums, taxes, and fees are prorated for each peril. If the cancellation takes effect during a paid-up period, a prorated refund invoice will be issued. See Proration, below.

Note

After cancellation, the policy may still be endorsed with an effective date before the cancellation’s effective date.

The most recent cancellation, if any, is available on:

The data.policy object in document templates and premium calculations

The Policy Response

Proration

Prorated financial calculations for cancellation can be done in one of two ways, based on the cancellations.proration property as set in policy.json:

Monthly proration, based on selecting 30E360
Linear proration, based on selecting actualMilliseconds

Note

Selecting actual for proration type will work the same as selecting 30E360.

Withdrawal

Withdrawal is a special case of a cancellation that cancels the entire policy. The cancellation effective time is automatically set equal to the policy start time. As a result of the above, all premium, taxes, and fees are reduced to zero, and after withdrawal, the policy may not be endorsed.

Documents

The document template named policy/cancellation.template.liquid is required, and has access to the same data as other policy Document Templates.

Cancellation details are in data.policy.cancellation (documented here). To differentiate between cancellations and withdrawals, use the following if statement:

{% if data.policy.cancellation.modification_name contains "modification.policy.cancel" %}
  {{ Cancellation_Document_Content }}
{% elsif data.policy.cancellation.modification_name contains "modification.policy.withdraw" %}
  {{ Withdrawal_Document_Content }}
{% endif %}

Performing a Cancellation or Withdrawal

Using the UI

Select the desired option under the Actions menu at the top right of the policy view
Select the effective date for the cancellation. In a withdrawal, this is automatically set to the start date of the policy. The UI then displays the premium and taxes that will be credited to the policyholder
Click Cancel or Withdraw to proceed

Using the API

Use the cancellation value endpoint to preview the refund and remaining balance on the policy
Use the issue cancellation endpoint to cancel the policy

Note

For a withdrawal, use the start timestamp of the policy as the effective timestamp