Do You Need the Policyholder’s Signature on an ACORD Cancellation Form?

ACORD cancellation form with a hand signing and the question “Do You Need the Policyholder’s Signature?” displayed.

The insurance industry often requires legal documents to maintain transparency and compliance. The Acord Cancellation Form (commonly known as the Acord 35) is used to cancel an insurance policy. A common question arises during the process: “Do You Need the Policyholder’s Signatures on an Acord Cancellation Form?” In most scenarios, the policyholder must sign the form to avoid delays.

Why the Policyholder’s Signature is Required

Legal Authorization

An insurance cancellation form fulfills the legal criteria. The signature ensures that the policyholder agrees to conclude the policy.

Carrier Compliance

Most insurance carriers require policyholders’ signatures for compliance and audit purposes. It serves as proof that all transactions are properly documented and transparent.

Avoid Unauthorized Cancellations

An authorized signature usually protects both the client and insurance provider from unauthorized cancellation.

Prevents Miscommunication

The signature of a policyholder mitigates the confusion regarding refund expectations, cancellation date, or leaving coverage.

Situations Where a Signature Might Not be Needed

Non-Payment of Premium

If a policyholder is unable to pay the premium. The policy can be canceled due to non-payment without a request form or signature.

Digital Consent or Verbal Authorization

Some insurance carriers accept e-signatures instead of wet signatures to be treated as proof of cancellation.

Change of Agent

A policy cancellation does not require a signature to switch the agent, but it keeps the carrier the same.

Commercial Policy Transfer

In business accounts, an authorized representative can cancel the policy without a signature. However, the policyholder’s name may be mentioned instead of a signature.

Best Practices for Agents and Brokers

For a smooth process, the agents and brokers must follow the instructions to avoid issues.

  • Re-check the carrier’s cancellation requirements.
  • Always get the signature of the authorized policyholder before submitting the Acord fillable 35.
  • Keep the complete cancellation form with authorized signatures to maintain the record.
  • Inform the policyholder of all pending cancellations.