If a policyowner cancels an insurance policy within 90 days of issuance, when is the producer required to refund a portion of the fee?

When a policyowner cancels an insurance policy within 90 days of issuance, the law typically mandates that the producer must refund a portion of the premium within 30 days of the cancellation notice. This requirement ensures that consumers are protected and not left waiting unduly long for any refund. The prompt process following a cancellation is critical in maintaining trust in the insurance system and ensuring that policyholders are fairly treated, particularly in the early stages of a policy when they might still be evaluating its usefulness and affordability.

Understanding this timeframe is essential for producers, who must not only know the legal requirements but also ensure that they communicate these effectively to their clients.