Applying For A Different Policy When Another Policy Is In Force
You may have a situation where the Plan is insuring a property under one type of policy, say a Dwelling Property policy, and the property has now become eligible for another type of policy, say a Homeowner policy. The Plan cannot have two policies in force insuring the same property for the same customers.
You should submit in the same envelope:
- A cancellation request for the existing policy with the cancellation date: "the date the new policy becomes effective".
- We will cancel the existing policy and return the unused premium to the customer.
- A new submission, with deposit and documentation of rejection, for the new policy.
- We will issue the new policy. If policy issuance is delayed, we will not cancel the existing policy. The producer and customer are notified by mail.
- We cannot use the return premium of the existing policy as the deposit on the new policy. These are two different transactions.