ACORD Forms

ACORD 35: Cancellation Request / Policy Release

The ACORD 35 does two related jobs. It requests cancellation of a policy, and it releases the carrier from liability for anything that happens after the cancellation date. The release side matters when the original policy documents cannot be returned to the carrier.

What it is

It is the paper trail for ending coverage on purpose: who asked, effective when, why, and how unearned premium comes back. Done right, it prevents the two classic cancellation problems, a coverage gap and a surprise refund amount.

When it's used

The insured sold the vehicle, building, or business, or is moving the account to another carrier.
Rewrites: the policy is being replaced by a different policy or carrier and the old one has to end cleanly.
Flat cancellations, when a policy was issued but never actually taken.
Carriers that require a signed cancellation request before they will process a voluntary cancellation.

Section-by-section walkthrough

Agency and carrier information

Your agency's details and the carrier holding the policy being cancelled.

Policy information

Policy number, line of business, and the policy term.

Watch for: A prior term's policy number after renewal. The carrier cannot match it and the request sits.

Named insured

The named insured exactly as it reads on the declarations.

Cancellation date and reason

The effective date coverage ends and the reason for cancelling.

Watch for: Requesting a date in the past. Most carriers will not backdate a cancellation without documentation, like proof of replacement coverage.

Method of premium return

How unearned premium is handled: flat, pro rata, or short rate.

Watch for: Letting the client expect a pro rata refund when an insured-requested cancellation earns short rate. Set the expectation before the form is signed.

Policy release

The insured's release of claims against the carrier from the cancellation date forward, used when the policy documents are lost or being retained.

Signatures

Every named insured signs, and some situations require lienholder or mortgagee involvement before the carrier will process.

Watch for: One signature on a two-name policy. The request bounces and the intended cancellation date slips.

In Relay

ACORD Generation is live in Relay. It drafts the ACORD 35 from the client record and the documents you already have, and a person reviews every field before anything goes out. See how →

Common errors

Missing signatures from every named insured on the policy.
Cancelling the old policy before the replacement is actually bound, creating a gap.
Wrong or prior-term policy number.
Client blindsided by a short rate penalty they were never told about.
Nobody notified the lienholder or mortgagee whose interest is on the policy.

Common questions

What is the difference between flat, pro rata, and short rate cancellation?

Flat cancels the policy back to inception with a full premium return, typically when coverage never actually started. Pro rata returns the exact unearned portion for the unused term. Short rate returns the unearned premium minus a penalty, and it is the usual method when the insured requests a midterm cancellation.

Can a cancellation be backdated?

Rarely, and never casually. Most carriers require documentation, such as proof that replacement coverage was in force from the requested date. Ask the carrier before promising a client a backdated cancellation.

Does every cancellation need an ACORD 35?

No, requirements vary by carrier and line. But a signed 35 is cheap protection for the agency: it documents that the insured asked for the cancellation and knew the effective date, which is exactly the record you want if a claim shows up after the fact.

Part of the Relay ACORD form library. Updated 2026-07-11. See how we source content.

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