Okuzeka
Insurance vocabulary · Policies & Contracts

Cancellation

Meaning in insurance, with examples

/ˌkænsəˈleɪʃən/nounCore term

In insurance, cancellation means: Ending an insurance policy before its expiry date, either by the customer or by the insurance company.

In Turkish: iptal, fesih, poliçe iptali

How it is used

Happens when a car is sold, a customer switches insurer or premiums are not paid. The policy wording explains notice periods and how much premium is refunded after cancellation. The verb is 'cancel'.

Example sentences

  1. After the car was sold, we processed the cancellation and refunded the unused premium.

  2. Cancellation by the insurer requires written notice to the policyholder.

Common collocations

  • cancellation fee
  • notice of cancellation
  • request a cancellation
  • mid-term cancellation
  • pro rataCalculated in proportion to the time or share involved, for example a premium refund based on the exact number of unused days.
  • renewalThe continuation of a policy for another period, usually a year, often with an updated premium and conditions.
  • lapseTo stop being valid because the premium was not paid or the policy was not renewed in time.
  • cooling-off periodA short time after buying a policy during which the customer can cancel it and usually get the premium back.

More terms: Policies & Contracts

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.