Habit Insurance Cancellation Rights
There are several reasons that may lead you to want to cancel an insurance policy. However, it's important to know the cancellation deadlines and understand if this is the best option for you. Insurance policies, fundamentally contracts between an entity (the insurer) and an individual or company (the policyholder), can be cancelled. Choosing an insurance policy is not a decision to be taken lightly, and you should be aware of your rights and duties, coverages, and all the general and specific conditions related to the insurance. Even so, cancellation is possible and is provided for by law.
Methods and Deadlines for Cancellation
Cancellation is a consumer right, but before making any decision, it's best to talk to your insurer and see if this is the best option or if renegotiating some aspect of your contract might be more advantageous. You may try to renegotiate the conditions or express reasons for your dissatisfaction. Often, a simple conversation can change your mind. If you still want to cancel your insurance, know the conditions under which you can do so.
What the Law Says
The law states that an insurance contract can be terminated by revocation, expiry, denunciation, or resolution. Revocation occurs by agreement between the two parties – the insurer and the policyholder. If the policyholder and the insured identified in the policy are not the same, the revocation of the contract must be authorized by the insured.
Termination by expiry occurs when the contract's period of validity ends, except if it is automatically extended. If you do not want this automatic renewal to occur, you can denounce the contract. The denunciation must be made in writing and sent to the recipient, but there are deadlines. For most insurances, it must be done at least 30 days before the contract extension date. For insurances of indefinite duration or with an initial period of duration of five years or more, at least 90 days before the end date of the contract.
Deadlines for Resolution
The law also provides for the right of free resolution, that is, to withdraw from the insurance contract without just cause. This decision can also be made by either party for a just cause. If the policyholder is an individual, they can terminate the contract by free resolution, but again, deadlines must be observed.
In life, personal accident, and health insurance with a duration of six months or more, except for group insurance, resolution can be made up to 30 days following the receipt of the policy.
The legal deadline is 14 days after receiving the policy for other insurances contracted at a distance (for example, by phone or Internet), except for insurance with a term of less than one month or for travel or luggage insurance, in which cases you legally do not have this right of free resolution.
These deadlines can also be counted from the contract date, when all the insurance information that must be included in the policy has been provided to the policyholder in a durable medium.
To be effective and considered valid, the resolution of the contract must be communicated in writing. Still, the insurer's rights may not be completely extinguished. The insurer may be entitled to receive certain amounts, such as the premium value related to the time elapsed, for covering the risk until the contract resolution date; the value of reasonable expenses incurred with medical examinations of the policyholder or insured, when these should be paid by the policyholder; costs of disinvestment that it has verifiably borne. In the case of insurance contracted at a distance, the insurer is only entitled to these values if the coverage began during the fixed period to resolve the contract.
Thus, before proceeding to cancel, it's better to know not only the deadlines but also your rights and duties, as this may not be the most appropriate solution, at least at that time.