Sample Letters-Cancellations and Nonrenewals

Sample Letter #1 – Discontinuing overdue payment follow-ups

 

January 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Automobile Policy

Dear Mr. Client:

In the past, we may have contacted you when a payment on your insurance policy, billed to you by the insurance company, was overdue.

Effective immediately, we will no longer do so, and it is your responsibility to make premium payments on or before their due date in order to avoid cancellation of your insurance policy. Prompt payment of premiums due will ensure that you receive the protection you need in the event of a loss.

We hope you will understand our reasons for discontinuing this practice and if we can be of service to you, please don’t hesitate to contact our office.

Sincerely,

 

Andy Agent


Sample Letter #2 – Nonrenewal by company, attempting to replace

 

January 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Automobile Policy

Dear Mr. Client:

We know you have recently been notified that your automobile policy with Terminator Insurance will not be renewed on its expiration date of June 1, 2001. The reason the company is not wiling to offer a renewal policy is that they have decided to exit this type of business in Your State.

We regret any inconvenience this may cause you and we are attempting to replace coverage with another insurance company. We will notify you well in advance of the expiration date if coverage cannot be replaced with another insurer.

Meanwhile, if you have any questions, please don’t hesitate to contact our office. We know that the termination of an insurance contract can raise concerns, and we are ready to answer any questions you may have.

Sincerely,

 

Andy Agent

Sample Letter #3 – Nonrenewal by company, NOT attempting to replace

 

January 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Automobile Policy

We know you have recently been notified that your automobile policy with Terminator Insurance will not be renewed on its expiration date of June 1, 2001. The reason the company is not wiling to offer a renewal policy is that they have decided to exit this type of business in Your State.

Our agency does not currently have another market that writes your type of business. Therefore, effective June 1, 2001, we will no longer be able to offer insurance for your automobiles. All coverage will cease on that date.

You should make arrangements to replace coverage with another agent or company. We have enclosed a summary of all claims paid under your policies for the previous five years. This should assist you in arranging replacement coverage.

We regret that this action is necessary, and we will provide assistance to you as you find an alternative insurance arrangement. Please call our office if you wish to discuss this situation.

Sincerely,

 

Andy Agent

 

Sample Letter #4– Nonrenewal by company, NOT attempting to replace

January 1, 20XX

Mr. Joe Client
123 Main Street
Anywhere, US

SUBJECT: Automobile Policy

We know you have recently been notified that your automobile policy with Terminator Insurance will not be renewed on its expiration date of June 1, 2001. The reason the company is not wiling to offer a renewal policy is that they have decided to exit this type of business in Your State.

Our agency does not currently have another market that writes your type of business. Therefore, effective June 1, 2001, we will no longer be able to offer insurance for your automobiles. All coverage will cease on that date.

You should make arrangements to replace coverage with another agent or company. We have enclosed a summary of all claims paid under your policies for the previous five years. This should assist you in arranging replacement coverage.

As we previously explained to you, your policy was issued on a claims-made basis, meaning coverage only applies to claims that took place after June 1, 1997 and are reported to the insurance company between June 1, 2000 and June 1, 2001. In order to have coverage for claims that may have occurred prior to June 1, 2001 but that are not reported until after the policy expires, you must purchase an Extended Reporting Period coverage option. This will extend the time period in which claims may be reported to the company, although they still must have occurred between June 1, 1997 and June 1, 2001.

The cost for this coverage option is $1,200 and payment must be received with your request for coverage. The deadline to exercise this option is August 1, 2001.

We are sorry we will be unable to provide assistance to you upon expiration of your policy. Please call our office if you wish to discuss this situation.

Sincerely,

 

Andy Agent