What is mid-termination of a policy also referred to as?

Mid-termination of a policy refers specifically to the discontinuation of the policy before its originally scheduled expiration date, which is most accurately described as policy cancellation. When a policy is canceled, it is officially terminated by the insurer or the policyholder, resulting in the loss of coverage. Cancellation can occur for various reasons, including non-payment of premiums or other violations of the policy terms.

Other terms, such as policy lapse or policy suspension, do not convey the same immediate termination of coverage as cancellation does. A lapse typically refers to a situation where the policyholder does not renew the policy or fails to pay premiums by the due date, resulting in the policy becoming inactive without an official cancellation process. Policy suspension implies a temporary halt to coverage, which differs from a complete cancellation. Lastly, a policy rewrite usually indicates a new policy being issued to replace an existing one, which does not denote termination but rather a continuation with new terms. Thus, cancellation is the most appropriate term for mid-termination of a policy.