What is a Flat Cancellation?
Flat cancellation is a term describing the complete termination of an insurance policy on the effective or renewal date. In other words, the policy is canceled before coverage begins or renews. Since no premiums have been paid, flat cancellations don’t require the insurance company to issue a refund. Additionally, policyholders won’t face early cancellation charges in flat cancellation cases. Flat cancellation typically happens when an insurance policy is no longer needed.
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