What must an insurer do to legally cancel an insured's policy?

To legally cancel an insured's policy, the insurer must provide written confirmation of the cancellation along with a refund of any unearned premium. This is essential because it ensures that the insured is formally informed of the cancellation in a documented manner, which is necessary for clarity and record-keeping. The written notice protects both parties by providing proof that the cancellation process took place according to the terms outlined in the policy and the regulations governing insurance practices.

While verbal notifications may be helpful for communication, they cannot serve as a substitute for the formal written requirements mandated by law or policy. Additionally, an insurer is not required to wait for all premium payments to be settled as long as the cancellation process adheres to the policy terms, nor do most policies necessitate waiting for their expiration to cancel. Therefore, providing written confirmation and addressing any refund of premiums is the legally recognized method for cancellation.