Understanding FSA
Cancellation rights
Except in the case of short-term insurance offering less than 1 month's cover, the customer has the right to cancel within 14 days of inception or renewal.
The cancellation period begins on the day the policy is effected or the day the customer receives all the written information, whichever is later.
Where a customer sends written notice of cancellation, it must be treated as becoming effective on the date it was posted.
If the customer cancels their policy within this 14-day period the insurer must refund either the whole premium, where a customer has been advised that there will be no charge, or a proportion of the premium less any sum advised to the customer prior to the sale of the contract (time on risk and set up charge)
It is the responsibility of the intermediary to bring the notice of cancellation to the attention of the customer. Details are given in FSA's ICOB Sourcebook.
