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Policy Cancellation
Cancel an issued policy to end coverage before the policy expiration date and generate financial transactions for billing.
Required Editions
| Available in: Lightning Experience |
| Available in: Professional, Enterprise, and Unlimited Editions where Insurance Brokerage is enabled |
Before cancelling a policy, ensure that:
- The insurance policy is in the Issued stage.
- Insurance Policy Transaction and Insurance Policy Transaction Detail generation are enabled in Setup.
- Billing configuration, including billing timing, proration behavior, and refund eligibility, is defined at the org or policy level.
- A Bill To Account and Bill To Contact are available based on your billing configuration.
- Proration Allowed is enabled on coverages and surcharges where proration is required.
- Refund Allowed is enabled on coverages and surcharges where credits or refunds are expected.
After you cancel a policy:
- Coverage ends on the cancellation effective date, and the policy stage changes to Cancelled.
- Earned and unearned portions of the policy term are calculated based on the cancellation effective date. Proration applies to premiums, fees, and taxes according to the policy configuration.
- Billing timing and refund settings determine whether credits or billing adjustments apply.
- An Insurance Policy Transaction with category Cancellation is created.
- Insurance Policy Transaction Detail records capture prorated premium, fee, and tax amounts across coverages and surcharges.
- Existing billing schedules are adjusted to prevent invoicing beyond the cancellation date.
- Example: Policy Cancellation
This example shows how policy cancellation affects policy structure, transactions, and billing for a simple health policy.
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