ACORD 35 — Cancellation Request / Policy Release

Edition 2017/05 · PDF format

Used when a policyholder requests cancellation of an existing insurance policy. Includes sections for cancellation reason, method (flat, short rate, pro rata), premium calculation, and required signatures.

Download ACORD 35 PDF

What is ACORD 35?

ACORD 35 (Cancellation Request / Policy Release) is the standard form used by policyholders, brokers, or insurers to request cancellation of an in-force insurance policy. It documents the request, the cancellation method, and any premium adjustment that results.

The form supports three cancellation methods: flat (treated as if policy never went into effect), pro rata (refund of unearned premium with no penalty), and short rate (refund minus a penalty percentage). Picking the correct method materially affects the premium refund.

Who needs this form

Policyholders cancelling coverage mid-term, brokers processing cancellations on behalf of insureds, and carriers issuing cancellation paperwork.

When to use it

Use whenever an in-force policy is being terminated before its expiration. Common triggers: insured no longer needs coverage, insured replacing carrier mid-term, carrier-initiated non-renewal or non-payment cancellation.

Key Fields on ACORD 35

The information the form captures, in the order it typically appears:

Policy number and carrier name
Named insured and address
Policy effective and expiration dates
Cancellation effective date
Cancellation reason
Cancellation method: Flat / Pro Rata / Short Rate
Premium calculation: original premium, return premium, penalty if applicable
Insured signature (required for insured-initiated cancellations)
Producer signature and date

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Picking the wrong cancellation method

Pro rata gives the largest refund. Short rate applies a penalty. Flat returns 100%. The method must match the policy contract and applicable state law. Confirm before submitting.

Cancelling before replacement coverage is bound

If the insured is moving to a new carrier, never submit ACORD 35 until the new policy is bound. Otherwise the insured has a coverage gap.

Forgetting to notify premium finance company

On financed policies, the cancellation refund must be paid to the finance company first. Send the cancellation paperwork to the financier in addition to the carrier.

Missing required signatures

Most carriers reject cancellations without the insured's signature. Some accept broker signature only with valid power-of-attorney.

Frequently Asked Questions

What's the difference between flat, pro rata, and short rate cancellation?

Flat: policy treated as if never in force, 100% refund (rare, requires carrier approval). Pro rata: refund of full unearned premium with no penalty. Short rate: refund of unearned premium minus a penalty percentage (typically 10%).

Who signs the ACORD 35?

The named insured signs to authorize the cancellation. The producer also signs to acknowledge submission. Some states require notarization for cancellations on certain policy types.

Can I cancel a policy by phone or email?

Most carriers require written cancellation via ACORD 35 or an equivalent form. Phone or email requests typically need to be followed up in writing to be effective.

Related ACORD Forms

ACORD 75