If an insurance company chooses to cancel a policy, what are they required to provide?

When an insurance company decides to cancel a policy, they are required to provide a written explanation detailing the reasons for the cancellation. This requirement is in place to ensure transparency and fairness in the insurance process. It allows policyholders to understand the specific circumstances that led to the cancellation, which could range from non-payment of premiums to changes in risk factors that might affect their coverage.

This written communication serves as a crucial record for both the insurer and the insured. It helps the policyholder confirm the cancellation's validity and provides them with necessary information to address the issues raised or seek alternative coverage. Thus, the written explanation is an essential part of the cancellation process, ensuring that policyholders are informed and can take appropriate actions based on the reasons provided.