Cancellation Qualifying Reasons/RC 13 - Revision history

WikiAdmin: /* Reason Code 13: Nullification Prior to Policy Effective Date */

2025-03-26T15:31:11Z

Reason Code 13: Nullification Prior to Policy Effective Date

← Older revision		Revision as of 08:31, 26 March 2025
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	\|A signed statement from the policyholder requesting nullification before the effective date.		\|A signed statement from the policyholder requesting nullification before the effective date.
	\|}		\|}
	''This table can be seen on page 6-12 of the {{FIM\|174}}.''		''This table can be seen on page 6-12 of the {{FIM\|page=174}}.''

	==== Additional Guidance ====		==== Additional Guidance ====

WikiAdmin: /* Required Documents */

2025-02-13T19:06:38Z

Required Documents

← Older revision		Revision as of 12:06, 13 February 2025
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	* Signed statement from the policyholder requesting nullification before the effective date.		* Signed statement from the policyholder requesting nullification before the effective date.
	* ~~If applicable~~, documentation showing the lender no longer requires coverage.		* When a mortgagee clause is included on the policy, documentation showing the lender no longer requires coverage.

	~~=== Document Gallery ===~~
	* '''Policyholder Statement:''' Request to nullify the policy before the effective date.
	* '''Lender Documentation:''' Proof that flood insurance is no longer required.

	== Scenarios for Context ==		== Scenarios for Context ==

WikiAdmin: /* Additional Guidance */

2025-02-13T19:05:37Z

Additional Guidance

← Older revision		Revision as of 12:05, 13 February 2025
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	==== Additional Guidance ====		==== Additional Guidance ====
	* Since the policy was never effective, there is no need to determine coverage eligibility.		* Since the policy was never effective, there is no need to determine coverage eligibility.
	* If the property is subject to a lender’s mandatory flood insurance requirement, the request must include documentation proving the lender no longer requires coverage.		* If the property is subject to a lender’s mandatory flood insurance requirement, the request must include documentation proving the lender no longer requires coverage, such as a completed [[Cancellation Verification Letter]].
	* If a ~~claim was filed under the policy, it cannot be nullified~~.

	== Required Documents ==		== Required Documents ==

WikiAdmin: Created page with "=== Reason Code 13: Nullification Prior to Policy Effective Date === This reason code applies when a policyholder pays the premium for a new or renewal policy but decides before the effective date that they do not want coverage. Since the policy never became effective, it must be nullified from inception. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be nullified if the policyholder requests cancellation befor..."

2025-02-12T18:53:32Z

Created page with "=== Reason Code 13: Nullification Prior to Policy Effective Date === This reason code applies when a policyholder pays the premium for a new or renewal policy but decides before the effective date that they do not want coverage. Since the policy never became effective, it must be nullified from inception. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be nullified if the policyholder requests cancellation befor..."

New page

=== Reason Code 13: Nullification Prior to Policy Effective Date ===

This reason code applies when a policyholder pays the premium for a new or renewal policy but decides before the effective date that they do not want coverage. Since the policy never became effective, it must be nullified from inception.

{| class="wikitable"
!'''Condition'''
!'''Details'''
|-
|'''Eligibility for Cancellation'''
|A policy may be nullified if the policyholder requests cancellation before the policy’s effective date and the property is not subject to a statutory or contractual flood insurance requirement.
|-
|'''Effective Date of Cancellation'''
|The policy is nullified from the start of the policy term.
|-
|'''Policy Terms Eligible for Refund'''
|The nullified policy term.
|-
|'''Type of Refund'''
|A full refund, including surcharges and fees, unless a claim was paid during the policy term.
|-
|'''Required Documentation'''
|A signed statement from the policyholder requesting nullification before the effective date.
|}
''This table can be seen on page 6-12 of the {{FIM|174}}.''

==== Additional Guidance ====
* Since the policy was never effective, there is no need to determine coverage eligibility.
* If the property is subject to a lender’s mandatory flood insurance requirement, the request must include documentation proving the lender no longer requires coverage.
* If a claim was filed under the policy, it cannot be nullified.

== Required Documents ==
To process this cancellation reason, underwriters must verify the documentation provided.

* Signed statement from the policyholder requesting nullification before the effective date.
* If applicable, documentation showing the lender no longer requires coverage.

=== Document Gallery ===
* '''Policyholder Statement:''' Request to nullify the policy before the effective date.
* '''Lender Documentation:''' Proof that flood insurance is no longer required.

== Scenarios for Context ==

'''Scenario 1:''' <br>
A homeowner purchases a flood policy in anticipation of a property closing but later decides not to proceed with the purchase. Before the policy effective date, they submit a request to nullify the policy, and the insurer issues a full refund.

'''Scenario 2:''' <br>
A lender requires a borrower to purchase flood insurance as a loan condition. Before the policy effective date, the lender determines the property is outside the SFHA and no longer requires coverage. The borrower submits documentation from the lender, and the policy is nullified with a full refund.

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