Cancellation Processing

Overview

A mid-term cancellation ends the policy before its scheduled expiration date. LAMS calculates the premium refund automatically based on the cancellation type and processes the necessary documents and accounting entries.

Supported Product Lines

Mid-term cancellation is supported for Accountants Standard, Accountants Express, Real Estate Standard, Real Estate Express, and Appraiser Express. Cyber coverage can be cancelled separately on these same product lines.

Processing a Cancellation

📷

Cancellation screen showing policy details, cancellation reason dropdown, cancellation date picker, calculated refund amount, and Submit button

Cancellation screen showing policy details, cancellation reason dropdown, cancellation date picker, calculated refund amount, and Submit button

1. Open the policy in Policy Search.
2. Click Cancel Policy in the toolbar.
3. Select the cancellation reason:
   • Insured request
   • Non-payment
   • Carrier cancellation
   • Producer request
   • Other
4. Enter the cancellation effective date.
5. Review the calculated refund — the system determines whether this is a pro-rata or short-rate refund.
6. Click Submit.
7. The cancellation letter is generated automatically.
8. Process the refund — see Refunds.

Caution

Cancellation cannot be processed if there is an outstanding payment balance on the policy. Resolve any pending payments before attempting to cancel.

Refund Types

Cancellation type	Refund method
Carrier-initiated	Pro-rata — full credit for unused days
Insured-initiated	Short-rate — pro-rata minus a retention penalty

Cancelling Cyber Coverage Separately

If the policy includes cyber coverage, it can be cancelled independently of the base policy, or at the same time. If cancelling cyber only:

1. Select Cancel Cyber Coverage Only from the cancellation options.
2. The base policy remains active.
3. A separate cyber cancellation endorsement is generated.

After Cancellation

Once a policy is cancelled:

• The policy status changes to Cancelled.
• The cancellation letter is available in the Documents tab.
• The refund entry is created in Accounting.
• The insured is eligible to elect an Extended Reporting Period (ERP).