Why a filing is cancelled
- Non-payment of premium
- The carrier switched insurers
- The insurer non-renewed the policy
- The carrier closed the business
- A change in the type of operation
The notice period
States require insurers to give advance notice before a filed policy's cancellation takes effect. The length of the notice period depends on the state and sometimes on the type of filing. During that period the filing stays in force, which gives the carrier time to replace coverage.
What to do
If you receive a cancellation notice, call your agent at once. Pay any balance if the cancellation is for non-payment and ask whether the policy can be reinstated, or arrange a replacement policy and have the new insurer file before the cancellation takes effect. Then confirm with the state that the new filing is on record.
If the filing lapses
A state may suspend or revoke a permit or authority once the cancellation takes effect without a replacement. Reinstatement can require a new filing, fees and sometimes a new application. Running without a valid permit can lead to fines and out-of-service orders.
Switching insurers cleanly
When switching, bind the new policy first, ask the new insurer to file, and only then ask the old insurer to cancel. This avoids a gap on the state's records.
Keep your own records
Save every cancellation notice, reinstatement letter and new filing confirmation. A clear paper trail helps when a state record looks wrong or a customer asks why a permit was briefly inactive.
Frequently asked questions
Will the state tell me if my filing is cancelled?
Some states send a notice, but you should not rely on it. Your insurer's cancellation notice is the main warning.