The ACORD 35 Cancellation Request / Policy Release is the standard form used to formally request cancellation of a commercial insurance policy. Whether a client is moving to a new carrier, selling their business, or simply no longer needs coverage, the ACORD 35 is the document that initiates the cancellation process and authorizes the carrier to terminate the policy.
The ACORD 35 is used whenever a commercial policy needs to be cancelled: • Client is moving coverage to a new carrier at renewal • Client is selling or closing their business • Client's business is merging or being acquired • Coverage is being replaced mid-term with a different policy • Client no longer needs the specific coverage line being cancelled • Policy was issued in error and needs to be voided
The ACORD 35 collects:
• Named insured name and address • Policy number to be cancelled • Policy period (effective and expiration dates) • Requested cancellation effective date and time • Reason for cancellation • Whether the insured is requesting a flat cancellation (as if never issued) or a pro-rata cancellation (for the unused portion) • Authorized signature of the named insured or their authorized representative • Return premium disposition instructions
When a policy is cancelled mid-term, the premium calculation depends on who is initiating the cancellation:
Pro-rata cancellation — the carrier refunds the unused portion of the premium with no penalty. This applies when the carrier initiates the cancellation.
Short-rate cancellation — the carrier refunds less than the pro-rata amount, applying a penalty for early cancellation. This applies when the insured initiates the cancellation mid-term.
Agents should advise clients of the short-rate penalty before initiating a mid-term cancellation, especially for annual policies with significant premium. In some cases, it may be more economical to let the policy run to its natural expiration.
The ACORD 35 requires both a cancellation date and a specific time. Most commercial policies specify 12:01 AM as the standard time — this means coverage ends at the very beginning of the cancellation date.
Agents must ensure there is no gap in coverage between the cancellation of the old policy and the effective date of the new policy. If the new policy starts on the same day as the old policy cancels, confirming both are at 12:01 AM prevents a technical gap that could create a coverage dispute.
Not getting the named insured signature before submitting the cancellation request
Not advising the client about the short-rate penalty for mid-term cancellations
Creating a coverage gap between the cancellation date and the new policy effective date
Not confirming the cancellation was processed and a return premium (if any) was issued
Cancelling a policy without confirming replacement coverage is in force
Send your client a plain-English intake link. When they finish, the completed ACORD 35 and all required companion forms are generated and ready to submit.