Insurance terminology - Cancellation v Lapse

Sally_A

I know it's very simple for us in the trade, but I see so many posts here where there is confusion.

Cancellation is deemed to be mid term - and you could be liable for cancellation fees.

Lapse is saying I don't want to renew with you, so please let it expire. And make sure you tell them to not take the automatic renewal from your account!!

The words you use to an insurer could easily go against you...perhaps we need a glossary of insurance speak.

InsideInsurance

Evidently havent done any work on any Solvency II projects - my last two clients have spent the last 18 months each and still havent agreed internally a glossary of terms! Especially between those that work in Lloyds business and those in retail.

There have been lots of posts about cancel -v- allow to lapse. Most tend to come here AFTER they have the problem rather than before though (and never find the search button)