What is required of the insurer regarding the cancellation notice?

The requirement for the insurer regarding the cancellation notice is that it must be sent to the address on file. This is essential because it ensures that the policyholder receives proper notification of the cancellation, allowing them to be informed about their coverage status and to take any necessary actions, such as obtaining new insurance. Sending the notice to the address on file is a way to maintain proper communication between the insurer and the insured, following a transparent procedure in the cancellation process.

While proof of delivery and electronic receipt might improve the reliability of communication, the key legal requirement is to ensure that the notification reaches the intended recipient at their registered address. It's critical for the insurer to follow this protocol to prevent misunderstandings and to ensure compliance with regulatory standards regarding policyholder communications. Without this requirement, it may be challenging for policyholders to contest or understand the basis of cancellations, leading to potential disputes.