Policy Cancellation

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.