cancellation
(1) The termination of an insurance policy or bond, before its expiration,
by either the insured or the insurer. Insurance policy cancellation provisions
require insurers to notify insureds in advance (usually 30 days) of canceling
a policy and stipulate the manner in which any unearned premium will be returned.
(2) Runoff basis means that the liability of a reinsurer under policies, which
became effective under a treaty prior to the cancellation date of such treaty,
shall continue until the expiration date of each policy. (3) Cutoff basis means
that the liability of a reinsurer under policies, which became effective under
the treaty, prior to the cancellation date of such treaty, shall cease with
respect to losses resulting from accidents taking place on and after said cancellation
date.
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PLI VII.D;
IWC VIII.C