Summarize the requirements of the fire insurance policy conditions regarding length and manner of notice and premium computation if the policy is terminated prior to the expiry date in the policy declarations. (Relate your answer to either the common law provinces or Quebec. State which one.)
Answer:
According to Civil Code of Quebec, fire insurance policy can be concelled at any time before it expires.
By mere written notice from each of the Named Insureds, the termination takes effect upon receipt of the notice. By the insurer giving written notice to each Named Insured, the termination takes effect fifteen days following receipt of such notice by the Insured at his last known address.
If the insurer cancels, it shall refund the insureds the excess of premium actually paid over the pro rata premium for the expired time. The pro rata premium is the same proportion of the total that the effective period of the policy before cancellation was of the original policy term.
If the insureds request cancellation, the insurer should refund the insureds the excess of the premium actually paid over the short-term rate for the expired time. This allows the insurer retains its pro rata premium and a surcharge.
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