Welcome to the Cancellations and Reinstatements workflow. This is a step-by-step workflow to complete the task of handling cancellations or reinstatement requests depending on if the insured makes the request or the agency receives a notice of cancellation/reinstatement.


This workflow is for agencies with full management system access as we will use the Management System, eSignature, and Client Center products. If you aren't sure if you have all these products, check out our Glossary of Icons and their Meanings - Left Navigation Bar section for product icons.


TABLE OF CONTENTS


Check out our video if you'd rather watch and follow along!
EZLynx Term: Applicant is our term for customer, insured, or account and are used interchangeably.

It is important for an Agency to process cancellations and reinstatements promptly to ensure all users within the Agency have the latest information on a policy, and that your Agency is following the same procedures.

 

Insured requests to cancel the Policy 

  1. Document in a Note the reason the Insured wants the policy to be cancelled and the cancellation date. (Example: The Insured sold the house, they are moving out of state, got a better rate with another Agent, and the like). 
    Not sure how? Click here!
    1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
    2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
    3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
    4. Input your notes in the "Type your note here..." box. 
    5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
    6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
    7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
    8. Select the Add Labels (price tag) icon to add a label to the note for organization.
    9. Select Save to finish adding the note to the customer's account.



  2. Generate an ACORD 35 – Cancellation Request / Policy Release form.
    Not sure how? Click here!
    1. From the Overview tab's Policies section, click on the Forms icon (clipboard) and choose Policy Service > Cancellation Request/Policy Release (ACORD 35). This will open the PDF portal.
    2. Fill in the proper details and choose Actions > Save. 



  3. Then choose how to send it to the Insured to sign and return it to you by way of eSignature, email, mail, or fax.
    Not sure how? Click here!
    • If via eSignature:
      1. While still in the PDF Portal, click Actions > eSignature. This will open the Create eSignature Envelope window.  
      2. Check the boxes for the document(s) that you need signed and select Next to continue.
      3. By default the envelope will be sent as the agent that creates the envelope. Click the Change button to choose someone else if necessary.
      4. Give the envelope a Name and if you wish a reference # and/or password requirement. 
      5. Decide how many days the envelope should be available for.
      6. If multiple documents need to be signed, decide which order you want them to be signed in. 
      7. By default the primary applicant is added as a recipient. If you want to add more or add yourself as a recipient, select +Add new recipient or +Add me.
      8. Add any notes for the recipients such as instructions and click Next to continue.
      9. Use the Recipient dropdown to decide who you need to sign. Then, click on the type of signature you need.
      10. Place the box on the document where you need them to sign. You can resize the box using the corners. 
      11. Repeat steps 10-11 until you have added boxes for every recipient where they need to sign.
      12. Click Review and Send to review the document one last time.
      13. Click the Envelope button to finish sending the out the eSignature envelope.
    • If via email:
      1. While still in the PDF Portal, Actions > Email. This will open a new browser tab and take you to the Compose Email page with the Agent/Broker of Record form already attached.
      2. Compose your email and click Send.
    • If outside of EZLynx:  
      1. On the customer's account, click the Documents tab. 
      2. On the ACORD 35, clicks Actions > Download to download the file so you can save it to your computer.



  4. Once received, request the cancellation on Carrier website, or email, fax or mail the Cancellation Request Form with appropriate cancellation date and details to the Carrier.

  5. Create a Note to attach the signed Cancellation form and to document the request. 
    1. Set a 10-day follow-up task reminder to be sure the policy is cancelled by the Carrier, and the Cancellation premium figures are received.
      Not sure how? Click here!
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
      4. Input your notes in the "Type your note here..." box. 
      5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
      6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
      7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
      8. Select the Add Labels (price tag) icon to add a label to the note for organization.
      9. Select Save to finish adding the note to the customer's account.


 

Agency Receives Notice of Cancellation from the Carrier

 

Note: This may only be a “warning” to let the Agency know the Insured is in “jeopardy” of cancelling (due to non-payment of premium to the Carrier, or information is needed for example). 

  • This type of Cancellation Notice will give the Insured time to comply with what is needed. The notice will have a cancellation date that indicates the last day the Carrier is willing to receive the information by. If the Carrier does not have what they need by the cancellation date, the policy will be cancelled, and the Carrier will issue the Final Cancellation with the Cancellation Return or Additional Premium figures.

 

  1. When a Notice of Cancellation is received, look for the reason for cancellation and cancellation date. 

  2. If the Cancellation was not requested or expected, create a Note to document the cancellation details (Cancel date and reason for the cancellation). 
    1. Set a Task Reminder for 3 days past the Cancellation date to follow up with the Carrier to determine if the policy was cancelled or will be reinstated. 
    2. Add the proper checklist and label.
      Not sure how? Click here!
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
      4. Input your notes in the "Type your note here..." box. 
      5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
      6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
      7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
      8. Select the Add Labels (price tag) icon to add a label to the note for organization.
      9. Select Save to finish adding the note to the customer's account.


 

When the reminder date comes up 

  1. Determine if the policy was cancelled, or will it be reinstated. (Check with Carrier)
    1. If the policy is cancelled, the Carrier will be calculating the Cancellation premium figures to send to the Agent. Set a task reminder for 10-15 days for receipt of the Final Cancellation premium figures.
    2. If the policy is reinstated, the Carrier will be sending a reinstatement notice to all parties. Set a task reminder for 5-10 days to receive the Reinstatement notice.
      Not sure how? Click here!
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
      4. Input your notes in the "Type your note here..." box. 
      5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
      6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
      7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
      8. Select the Add Labels (price tag) icon to add a label to the note for organization.
      9. Select Save to finish adding the note to the customer's account.


 

Agency Receives Notice of Reinstatement from the Carrier

  1. Identify the Reinstatement date to verify that it matches a recent Cancellation Date and Reason. 
    1. If this reinstatement date corresponds with a recent cancellation notice date, find the cancellation task reminder, complete the checklist, and mark it completed.
    2. Enter the Reinstatement details (Reinstatement Date / Reason for Reinstatement) in the Note
    3. Add the proper checklist and label.
      Not sure how? Click here!
      • Update Note via Activity tab:
        1. Navigate to the Activity tab of the customer's account.
        2. Search for the already started discussion using the Search Activities search.
        3. Select the discussion. This will expand it so you can see all the notes included.
        4. Select the Edit this task icon (wrench) next to the task. This will open the Agency Workspace pane with the customer's name, discussion title, and previously added notes.
        5. Check the boxes from the checklist.
        6. Use the dropdown to change the task from Open to Completed.
        7. Input your notes in the "Type your note here..." box. 
        8. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
        9. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
        10. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
        11. Select the Add Labels (price tag) icon to add a label to the note for organization.
        12. Select Save to finish adding the note to the customer's account.
      • Update Note via Add Note icon: 
        1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
        2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
        3. Search for the previous discussion title by typing into the Discussion Title field. Suggested options will display. Select the correct one. This will add the discussion title and the previously added notes to the pane.
        4. Follow steps 5-12 from the Update the Note via Activity tab section above.



NOTE: If a cancellation “transaction” was already created for the policy, create a reinstatement transaction to back out the cancellation figures following the Agency procedures for billing to put the policy back into force in the system.

 

When the Insured wants to keep the policy after it is already cancelled

There may be times where the Insured has cancelled with the Carrier but wants to comply with what the Carrier needed to keep the policy. (Will make an overdue payment, has the required information the Carrier needed, and the like).


There is no guarantee the Carrier will reinstate the policy. It is up to the Agent to “walk this through” before any assumption of coverage is back in force. It will be important to stay in close contact with the Carrier until the Agency is confident a decision is made for reinstatement. 

  1. If the Agency is in receipt of documentation that would support requesting a reinstatement of a cancelled policy, send the information to the Carrier with the request to reinstate the policy. (Example: Statement of no loss, Late Payment, Compliance type of documentation).

  2. Email, call, or correspond with the Carrier to ask for reinstatement. 

  3. Attach supporting documents and enter detailed Notes in a Note with how the request was made to the Carrier and what was discussed and any outcome from the request.
    Not sure how? Click here!
    1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
    2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
    3. If this is a new discussion, input the Discussion Title. If this note needs to be added to an already started discussion, search for the previous discussion title. 
    4. Input your notes in the "Type your note here..." box. 
    5. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
    6. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
    7. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
    8. Select the Add Labels (price tag) icon to add a label to the note for organization.
    9. Select Save to finish adding the note to the customer's account.



  4. If the Carrier honored the reinstatement request, create a Task Reminder to follow up for the reinstatement. 
    Not sure how? Click here!
    • Update Note via Activity tab:
      1. Navigate to the Activity tab of the customer's account.
      2. Search for the already started discussion using the Search Activities search.
      3. Select the discussion. This will expand it so you can see all the notes included.
      4. Select the Edit this task icon (wrench) next to the task. This will open the Agency Workspace pane with the customer's name, discussion title, and previously added notes.
      5. Check the boxes from the checklist.
      6. Use the dropdown to change the task from Open to Completed.
      7. Input your notes in the "Type your note here..." box. 
      8. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
      9. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
      10. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
      11. Select the Add Labels (price tag) icon to add a label to the note for organization.
      12. Select Save to finish adding the note to the customer's account.
    • Update Note via Add Note icon: 
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. Search for the previous discussion title by typing into the Discussion Title field. Suggested options will display. Select the correct one. This will add the discussion title and the previously added notes to the pane.
      4. Follow steps 5-12 from the Update the Note via Activity tab section.



  5. If the reinstatement request was not honored by the Carrier, the policy remains cancelled. The Agent will begin to work on new quotes if they want to keep the insured with the Agency. (Refer to Quoting Personal Lines in and out of the Personal Lines Rater & Quoting Commercial Lines).

 

Final Cancellation Premium Figures are Received from the Carrier


When the Cancellation premium figures are received, the policy should be updated in the system as Cancelled. 

  1. Find the Policy and choose Actions > Service > Cancel.
    1. Enter the cancellation date of the policy.
    2. Enter the Return Premium (The system will treat as a return premium number automatically).
      Not sure how? Click here!
      1. From the Overview Policies section, or the Policies tab, click on the Policy Actions (three vertical dots). 
      2. Hover over Service.
      3. Choose Cancel. 




  2. Complete the checklist and open task reminder for the cancel confirmation. Add a proper checklist and label. 
    Not sure how? Click here!
    • Update Note via Activity tab:
      1. Navigate to the Activity tab of the customer's account.
      2. Search for the already started discussion using the Search Activities search.
      3. Select the discussion. This will expand it so you can see all the notes included.
      4. Select the Edit this task icon (wrench) next to the task. This will open the Agency Workspace pane with the customer's name, discussion title, and previously added notes.
      5. Check the boxes from the checklist.
      6. Use the dropdown to change the task from Open to Completed.
      7. Input your notes in the "Type your note here..." box. 
      8. Select the Add Attachments (paperclip) icon to attach any relevant documents needed for reference. 
      9. Select the Add Task (paper with a checkmark) icon to assign a task or checklist to someone at your agency.
      10. Select Add Reminder to add as many reminders (email, text, and/or notification) as needed for the task or checklist.
      11. Select the Add Labels (price tag) icon to add a label to the note for organization.
      12. Select Save to finish adding the note to the customer's account.
    • Update Note via Add Note icon: 
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. Search for the previous discussion title by typing into the Discussion Title field. Suggested options will display. Select the correct one. This will add the discussion title and the previously added notes to the pane.
      4. Follow steps 5-12 from the Update the Note via Activity tab section.



  3. Send the “Sorry we lost you” email.
    Not sure how? Click here!
    1. On the customer's account pane, click on the Envelope icon. This will open a new browser tab and take you to the Compose Email page with the Agent/Broker of Record form already attached.
    2. Compose your email and click Send.




  4. If the Agency determines they would like to win the business back, set up the X Date in Sales Center, and follow the Agency procedures for communications.
    Not sure how? Click here!
    • Update Note via Activity tab:
      1. Navigate to the Activity tab of the customer's account.
      2. Search for the already started discussion using the Search Activities search.
      3. Select the discussion. This will expand it so you can see all the notes included.
      4. Select the Edit this task icon (wrench) next to the task. This will open the Agency Workspace pane with the customer's name, discussion title, and previously added notes.
      5. Check the boxes from the checklist.
      6. Use the dropdown to change the task from Open to Completed.
      7. Input your notes in the "Type your note here..." box. 
      8. Click the Create Opportunity icon (briefcase). This will open the Sales Center pane next to the Add Note page. 
      9. Fill out the information for the next X-date for the lines of business. 
      10. Select Save to finish adding the note to the customer's account.
    • Update Note via Add Note icon: 
      1. On the top-right, select the Add Note (paper with a plus) icon. This will open the Agency Workspace pane.
      2. If you are on the customer's account, it will auto-fill their name in the top field. If you are not, then you will need to search for the customer's account.
      3. Search for the previous discussion title by typing into the Discussion Title field. Suggested options will display. Select the correct one. This will add the discussion title and the previously added notes to the pane.
      4. Follow steps 5-10 from the Update the Note via Activity tab section.



 

Best Practices! - Proactively review notices of cancellation by utilizing the Notice of Cancellation Trigger in Automation Center. This pre-built automation assigns a task to policy's Assigned Producer, CSR, or Specific User to review notice of cancellation once notice is received via download or entered manually.

We hope this workflow article was helpful in learning how to Cancellations and Reinstatements. Please let us know if this article was helpful by answering the question below. Check out our related articles on the right-side of the page to learn more about EZLynx!