Terminating a Policy over the Phone: Three RulesTerminating a Policy over the Phone: Three Ruleshttp://chad.ca/en/members/professional-practice/toolbox/termination-of-mandate/108/terminating-a-policy-over-the-phone-three-rulesRésiliation de polices par téléphone : trois principes à respecter

This summary does not constitute a legal opinion. The information it contains may not reflect the current state of the law.

In the wake of a car accident, the insured contacts her representative and learns, to her great surprise, that her insurance policy was terminated at renewal time. Apparently, the termination had been made upon her request during a phone conversation six months earlier.

This ruling brings to the fore three principles:

1. The importance of notes in the file
The importance of noting down and documenting your actions and interventions cannot be overemphasized. Though appropriate file-keeping is essential to proper follow-up, it also allows you to provide evidence of your actions in the event of a complaint or a dispute.


2. Respecting the rules of termination
The discipline committee can rule that non-compliance with a legal provision such as those found in the Automobile Insurance Act or the Civil Code of Quebec is a breach of ethics. You must also keep in mind the importance of obtaining a signature when this is specifically required by law.


3. The usefulness of a termination of mandate letter
Not sending a termination of mandate letter is a breach of ethics since it is considered to be a failure to report to the insured. However, above and beyond the breach of ethics, sending a termination of mandate letter also allows the representative to avoid certain misunderstandings, since it confirms the parties’ intentions — for example, the fact that the representative terminated the insurance policy at the insured’s request.

8/22/2014 10:26:24 PMhttp://docs.chad.ca/SiteCollectionDocuments/2010-06-chadpresse-resiliation-telephone-an.pdf