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A cancellation changes coverage and can change money. Underflow records the effective date, reason, calculation method, and notice document; when unearned premium remains, it also books the return.

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Return premium

The program can define the short-rate penalty. When it does not, Underflow uses 10%. When a return is booked, the policy transaction records the method used.

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Schedule a cancellation

Open the file’s Policies section. On a Bound or Issued policy:
  1. Enter a reason, or leave it blank to use “Cancelled by the underwriting desk.”
  2. Choose a pro-rata or short-rate return.
  3. Select Schedule cancellation and confirm.
The current form does not offer an immediate cancellation or a requested effective date. Underflow requires a valid home state and a verified state rule with a notice period a person entered from the statute, then uses that period for an other cancellation. It refuses a missing or unverified rule, and a rule with no period entered: the tax feed verifies a state’s figures, not its notice law, so a state it lands has no period until someone enters one. A notice period that would end on or after the policy’s expiration is refused too. The policy expires on its own date, and what the desk owes then is a nonrenewal notice. Scheduling files the notice PDF on the policy and proposes an email to the file’s counterparty, normally the producer. On a direct-business file, that can be the insured contact. The email may send or wait for approval according to the outbound email charter. Once it goes out, signed provider events track it, and the policy lists each notice with its delivery state and the address it went to. The statutory period starts at confirmed delivery; if delivery is later than expected, Underflow moves the cancellation date out, and coverage ends on that later date even when the sweep that acts on it runs late. If delivery is so late that the period reaches expiration, the scheduled cancellation is withdrawn with a rescission notice and the policy expires on its own date. The sweep never infers that a notice was served. While the notice is not confirmed delivered, whether it is waiting for approval, had no eligible recipient, failed, or bounced, the policy stays in force and the schedule stays visible. To serve it again, rescind the scheduled cancellation and schedule it afresh: that issues a new notice from the current verified state rule and starts a new clock.

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Nonpayment cancellation

Nonpayment follows a notice path:
1

Dunning reaches final notice

The invoice remains unpaid after the final aging notice.
2

Aurora proposes cancellation

The action always waits for a person’s approval.
3

The notice is delivered

The counterparty email follows the outbound email charter, and signed provider events record acceptance, delivery, deferral, bounce, or complaint. Confirmed delivery starts the verified home-state nonpayment notice period.
4

Payment or cancellation

On the effective-date sweep, an open balance cancels the policy only after confirmed delivery. A cleared balance rescinds the schedule.
Payment does not remove the visible schedule immediately. A member can select Rescind as soon as the balance is resolved; otherwise the due-date sweep clears it before changing coverage. Rescission stores a written correction and proposes it to the same file counterparty; the original and correction both remain on the policy.
A delivered email is evidence of this electronic service path, not a substitute for a jurisdiction that requires another service method. Do not schedule until the verified state rule reflects the required process.

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When the cancellation takes effect

Until the scheduled date, the policy remains Bound or Issued. A due policy also remains in force until the current notice is confirmed delivered. When the cancellation executes, Underflow:
  • Changes the policy to Cancelled.
  • Books the unearned base premium from the latest endorsed term premium when any unearned term remains.
  • Returns taxes proportionally or recalculates them through the surplus-lines tax path when a return is booked.
  • Keeps fees fully earned.
  • Uses the original commission rate.
  • Creates a state-filing obligation for an eligible surplus-lines cancellation return.
Corrections to the premium ledger are made with reversal rows rather than by changing the original transaction.

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Reinstatement

On a Cancelled policy, select Reinstate. The click is recorded in the actions ledger like a scheduled cancellation, so who restored coverage and when is on the file. Underflow restores Issued when the policy had been issued and Bound otherwise, clears the cancellation state, and reverses the cancellation premium transaction when one exists. The original cancellation and its reversal remain in the ledger. A policy cancelled again after reinstatement books a second return as its own event, and a second reinstatement reverses that one. Reinstatement also stores a written confirmation and proposes it to the file’s counterparty. The original cancellation and the reinstatement notice both remain on the policy.