Definition: Policy Cancellation Fee - Examples & Advice | Bolder Money

Accident Liability Accident Liability

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Adverse Selection Adverse Selection

Aggregate Limit Aggregate Limit

Asset Protection Plan Asset Protection Plan

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Benefit Cap Benefit Cap

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Deductible Deductible

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Emergency Savings Fund Emergency Savings Fund

Employment Practices Liability Employment Practices Liability

Exclusion Clause Exclusion Clause

Exposure Limit Exposure Limit

Extended Warranty Extended Warranty

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Loss Ratio Loss Ratio

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Policy Cancellation Fee Policy Cancellation Fee

Policy Endorsement Policy Endorsement

Policy Exclusion Policy Exclusion

Policy Limit Policy Limit

Policy Premium Policy Premium

Policy Renewal Policy Renewal

Policy Rider Policy Rider

Policy Settlement Policy Settlement

Policy Upgrade Policy Upgrade

Policyholder Dividend Policyholder Dividend

Political Risk Insurance Political Risk Insurance

Pre-Existing Condition Exclusion Pre-Existing Condition Exclusion

Premium Adjustment Premium Adjustment

Premium Financing Premium Financing

Premium Loading Premium Loading

Premium Refund Premium Refund

Premium Waiver Premium Waiver

Product Liability Insurance Product Liability Insurance

Property Liability Property Liability

Protection Fund Protection Fund

Rate Increase Notice Rate Increase Notice

Reinsurance Reinsurance

Renewal Clause Renewal Clause

Risk Analysis Risk Analysis

Risk Exposure Risk Exposure

Risk Grading Risk Grading

Risk Mitigation Strategy Risk Mitigation Strategy

Definition

A charge incurred if you decide to cancel your policy before its term ends. It discourages frequent changes and helps cover administrative costs.

What to consider

Document all losses thoroughly.
Review policy definitions of insured loss.
Ensure claims are filed within deadlines.

Real world scenarios

After a natural disaster, a homeowner filed a claim for the insured loss to repair damages.
An auto policy paid out for an insured loss after a collision.
A business filed a claim for an insured loss due to property damage from a fire.

Related terms

Insurance & Financial Protection

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