Plain-English meaning
Ending a policy before its scheduled expiration date by the insurer or policyholder.
Why it matters
The effective date can create a coverage gap and may affect a mortgage lender's response.
Where you may see it
Notices, billing records, escrow communications, and policy conditions.
What to verify
Reason, notice date, effective date, refund, reinstatement options, and replacement coverage.
Do not confuse it with
Nonrenewal, which generally means the insurer will not continue coverage at the next renewal.
For policy-specific meaning, read the definition and related provision in the issued policy.