Hello all ... and question

If you are cancelling mid-term, then yes there is a release you have to sign. Otherwise, if it's a renewal that hasn't started yet, a release is not needed. Just a note or a call, or just don't pay your premium.

A release does not absolve the carrier of liability for a claim that may have already happened. It's just an acknowledgement that you want coverage to cease before your next renewal date.

Splathead, thanks so much for your reply. I am cancelling after renewal, I am just surprised that the contract does not specify anything about the release form. The agent showed me a form that says something like:
"The undersigned agrees that: The above referenced policy is lost, destroyed or being retained. No claims of any type will be made against the Insurance Company, its agents or its representatives, under this policy for losses which occur after the date of cancellation shown above."

I never had any claims, but wonder for products that have already been sold/distributed if I am loosing any protection if I sign this.

Thanks, any additional thoughts are appreciated.

shirtflome said:

Splathead, thanks so much for your reply. I am cancelling after renewal, I am just surprised that the contract does not specify anything about the release form. The agent showed me a form that says something like:
"The undersigned agrees that: The above referenced policy is lost, destroyed or being retained. No claims of any type will be made against the Insurance Company, its agents or its representatives, under this policy for losses which occur after the date of cancellation shown above."

I never had any claims, but wonder for products that have already been sold/distributed if I am loosing any protection if I sign this.

Thanks, any additional thoughts are appreciated.

Click to expand...

Yes, that's the standard release. In the old days, you had to return your policy if you wanted it cancelled. Insurance companies realized this wasn't the smartest procedure; most of us would want to hold on to our policy for proof of prior coverage. So the release you're quoting was invented. It is the standard way to cancel a policy mid-term.

Product liability is based on when the claim occurred, not when the product was sold. Any claim that had already occurred BEFORE you cancel your policy would be covered, regardless when you sold the product. Any claim that happens AFTER you cancel your policy is not covered even if you sold the product before your cancellation date.