How to Fill Out ACORD 35: Field-by-Field Guide for Agents

ACORD 35 is the Cancellation Request/Policy Release form. It is used when the insured or the agent - not the carrier - wants to cancel an in-force policy or release the agency's binding authority on a binder. Agents who fill out ACORD 35 incorrectly generate carrier rejections, return premium disputes, and in mortgage-involved accounts, lender notification failures that can result in force-placed insurance.

This guide covers every field on the form, when to use ACORD 35 versus other cancellation methods, how to calculate return premiums, and the most common errors.

Key Takeaways

• ACORD 35 is for insured-initiated or agent-initiated cancellations. Carrier-initiated cancellations use a different process.
• The effective date of cancellation field is the most common error - it must be a future date unless the carrier permits backdating, which most do not.
• Pro-rata return premium gives the insured credit for the full unused premium. Short-rate return premium penalizes the insured for early cancellation - typically 10–15% of the unearned premium.
• Mortgagees and loss payees must be notified separately. ACORD 35 alone does not satisfy the lender notification requirement.
• The replacement policy section is required when the cancellation results from a new policy replacing the expiring one. Leaving it blank when there is a replacement creates an audit discrepancy.
• Most carriers require the named insured's signature. Agent-only cancellations are generally not accepted.

What ACORD 35 Is - and What It Is Not

The acord-form library includes several cancellation-related documents. ACORD 35 has a specific, limited purpose.

ACORD 35 is for: An insured who wants to cancel their policy before the expiration date, or an agent releasing a binder or policy when the coverage is being replaced. It is a request document - it initiates the cancellation process but does not by itself cancel the policy. The carrier processes the request and issues a final cancellation notice.

ACORD 35 is not for: Carrier-initiated non-renewals, carrier-initiated cancellations for non-payment, or mid-term cancellations the carrier initiates for underwriting reasons. Those are handled by the carrier's own cancellation notice forms. Agents do not use ACORD 35 to respond to carrier cancellations.

ACORD 35 is not for: Short-term or temporary coverage documents. If you need evidence-of-insurance for an in-force policy, that is ACORD 25 or ACORD 24. ACORD 35 terminates coverage; it does not evidence it.

Every Field on ACORD 35

Section 1: Agency and Producer Information

Agency Name and Address. Your agency's full legal name and physical address. Use the name on your carrier appointment, not a DBA unless that is how you are appointed.

Producer Name. The licensed producer handling the account. Required for the carrier's records. Ties the cancellation to a specific producer code.

Agency Phone/Fax/Email. Contact information for carrier follow-up. Carriers rejecting the form need to reach you quickly.

Code / Sub-Code. Your carrier-assigned agency code and, where applicable, the sub-producer code. Errors here delay processing because the carrier cannot match the form to an active appointment.

Section 2: Insured Information

Named Insured. Enter the named insured exactly as it appears on the declarations page. Any mismatch - a corporation listed with or without "Inc.," a DBA instead of the legal name - will cause the carrier to request a corrected form.

Mailing Address. The insured's current mailing address. If the insured has moved, update this. Return premium checks and cancellation notices go to this address.

Section 3: Policy Identification

Company. The carrier name. Use the full legal name of the carrier, not the group or holding company name. "Travelers Property Casualty Company of America" is not the same as "Travelers Insurance" for carrier processing purposes.

NAIC Code. The carrier's National Association of Insurance Commissioners code. This is critical for multi-carrier groups where the NAIC code identifies the specific underwriting entity.

Policy Number. The full policy number exactly as it appears on the declarations page. Partial policy numbers or transposed digits will cause rejections.

Policy Period (From / To). The policy's original inception and expiration dates, as shown on the declarations.

Line of Business. The coverage line being cancelled - Commercial General Liability, Commercial Property, Commercial Auto, etc.

Section 4: Cancellation Request

Effective Date and Time of Cancellation. This is the most operationally critical field. The effective date must be at 12:01 AM on the requested cancellation date unless the policy specifies a different time (some auto policies use noon). Enter the date the cancellation should take effect - this is a future date in most cases.

Most carriers will not backdate cancellations without specific authorization and documentation. If the insured says they want the cancellation effective two weeks ago, you need to contact the carrier before completing the form. Backdated cancellations without carrier approval create coverage disputes.

Reason for Cancellation. Select the appropriate reason code or write in the reason. Common reasons:

• Replaced by new policy (most common)
• Insured sold/transferred the business
• Insured no longer needs the coverage
• Insured dissatisfied with carrier/premium

The reason affects how the carrier processes return premium and whether they flag the account for underwriting review.

Section 5: Return Premium Instructions

The return premium section is where most agents create problems. You must choose between pro-rata and short-rate - and understand what each means.

Pro-Rata Return. The carrier refunds the insured for the exact unused premium based on the number of days remaining in the policy period. If a policy has 180 days remaining out of 365, the pro-rata return is 180/365 of the annual premium. This is the standard return when cancellation is at the insured's request without penalty.

Short-Rate Return. The carrier refunds less than the pro-rata amount - typically applying a table that penalizes the insured for canceling early. The short-rate table varies by carrier. A policy cancelled after 10% of its term may return only 80–85% of the remaining pro-rata premium. Short-rate applies when the policy terms specify it for insured-initiated cancellations.

Example: A commercial property policy with an annual premium of $12,000 is cancelled 120 days into the 365-day term. Pro-rata return: ($12,000 × (365-120)/365) = $8,055. Short-rate return at a typical 10% penalty on unearned premium: ($8,055 × 0.90) = $7,250.

Earned Premium Confirmation. Some forms require confirmation of the earned premium - the portion the carrier keeps. This is the full annual premium minus the return premium. If you indicate a return premium that does not math-check against the policy premium and remaining days, the carrier will flag it.

Section 6: Mortgagee / Loss Payee Notification

Mortgagee Listed on Policy. If a bank or lender holds a mortgage interest on the covered property, their name, address, and loan number appear here. The mortgagee has a direct financial interest in the coverage. Cancelling property insurance without notifying the mortgagee violates most mortgage agreements and state insurance notification requirements.

ACORD 35 initiates the cancellation request. The mortgagee notification is a separate legal obligation. Most states require the carrier to provide the mortgagee with advance written notice (typically 10–30 days for insured-initiated cancellations, depending on state law). Confirm with the carrier that their cancellation process includes the mortgagee notification - do not assume ACORD 35 alone satisfies it.

Failing to notify the mortgagee can result in force-placed insurance being applied by the lender, a claim dispute if a loss occurs after the cancellation effective date, and potential liability for the agent.

Section 7: Replacement Policy Information

Is This Cancellation Due to Replacement? If the insured is cancelling because a new policy is replacing this one, check "Yes" and complete the replacement policy fields.

Replacement Carrier and Policy Number. Enter the new carrier's name and the new policy number if available. If the new policy has not yet been issued, enter "Pending" and the expected carrier.

Replacement Effective Date. The date the replacement policy takes effect. This must match - or precede - the cancellation effective date. A gap between the cancellation date and the replacement inception date creates an uninsured period. Even one day of lapse on a commercial property policy can have significant consequences.

Leaving the replacement section blank when there is a replacement creates an audit discrepancy. Carriers match incoming cancellation requests against new business submissions. Unmatched cancellations trigger underwriting review.

Section 8: Signature Fields

Named Insured Signature. Most carriers require the named insured's signature on the cancellation request. This confirms the insured has authorized the cancellation - not just the agent. Agent-only cancellations are generally not accepted for liability lines. Some carriers accept an emailed authorization from the insured, but they require the email to be attached to the form submission.

Date Signed. The date the named insured signed. This should be on or before the submission date to the carrier - not before the insured knew about the cancellation.

Producer Signature. The producing agent signs to certify the information is accurate and the request is submitted in good faith.

When to Use ACORD 35 vs Other Methods

Many carriers also accept cancellation requests via their own online portals. The ACORD 35 form is the standard submission when the carrier's portal is unavailable or when the submission requires signature documentation.

Common Errors on ACORD 35

Wrong effective date of cancellation. Backdating without carrier pre-authorization is the most common mistake. Establish the correct date before completing the form.

Mismatched named insured. A corporation listed as "ABC Construction" on the policy but written as "ABC Construction Inc." on ACORD 35 will cause a rejection. Pull the declarations page and copy the name exactly.

Missing mortgagee notification follow-up. ACORD 35 does not automatically notify the mortgagee. Confirm the carrier handles this notification and document your confirmation.

Incorrect return premium method selected. Selecting pro-rata when the policy terms require short-rate (or vice versa) creates a premium reconciliation dispute. Read the policy cancellation conditions before selecting.

No replacement policy information when applicable. When a replacement is in place, the blank field triggers a carrier audit inquiry and may delay processing.

No insured signature. Submitting without the named insured's signature on liability lines will generate a rejection from most carriers.

Handling the Replacement Policy Section Correctly

The most underappreciated workflow issue with ACORD 35 is the replacement policy timing. When an insured is switching carriers, the sequence matters:

1. Bind the new policy first.
2. Confirm the new policy number and inception date.
3. Complete ACORD 35 with the cancellation effective date matching the new policy's inception date - no gap, no overlap.
4. Submit ACORD 35 to the prior carrier with the replacement policy information completed.

A same-day effective date on both policies (midnight to midnight) eliminates the gap. Some agencies set the new policy effective one day before the cancellation to create a one-day overlap - providing a buffer against processing delays. This creates a brief double-coverage period, which most carriers allow without premium adjustment.

For more on ACORD form workflows, see our ACORD form completion guide for agencies and the binder and evidence of insurance guide.

Frequently Asked Questions

What is ACORD 35 used for?

ACORD 35 is the Cancellation Request/Policy Release form used when the insured or agent wants to cancel an in-force policy before its expiration date. It is submitted to the carrier to initiate the cancellation process. ACORD 35 is not used for carrier-initiated cancellations, non-renewals, or mid-term adjustments. It is specifically for insured-initiated or agent-initiated cancellations, including situations where a policy is being replaced by a new policy with the same or a different carrier.

Does ACORD 35 cancel the policy immediately?

No. ACORD 35 is a request to cancel, not a cancellation itself. The carrier processes the request and issues a formal cancellation endorsement or confirmation. The cancellation becomes effective on the date entered in the effective date field, provided the carrier approves the request. Carriers typically process ACORD 35 submissions within 3–10 business days. Do not assume coverage has ended until you receive the carrier's written confirmation.

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

Pro-rata cancellation returns the full unused premium calculated on a daily basis - the insured receives credit for every day of coverage they paid for but did not use. Short-rate cancellation applies a penalty table, returning less than the full pro-rata amount to compensate the carrier for administrative costs and the higher loss ratio on cancelled policies. The policy's cancellation conditions specify which method applies. Most insured-initiated commercial line cancellations are short-rate; some personal lines policies specify pro-rata for insured-initiated cancellations.

Do you need the insured's signature on ACORD 35?

Most carriers require the named insured's signature on liability lines (commercial general liability, commercial auto, umbrella/excess). The signature confirms the insured authorized the cancellation. Agent-only cancellations are typically rejected on these lines. For property lines, carrier requirements vary. Check your carrier's guidelines before submitting. If the insured is unavailable to sign, some carriers accept a written or emailed authorization attached to the form submission.

How do you handle ACORD 35 when there is a mortgagee on the policy?

Enter the mortgagee's full name, address, and loan number in the mortgagee section. Then confirm with the carrier that their cancellation processing includes advance written notice to the mortgagee - most states require 10–30 days of advance notice to mortgage holders on property cancellations. Document your confirmation. ACORD 35 alone does not satisfy the notification requirement. Failure to properly notify the mortgagee can result in force-placed insurance, claim disputes, and lender liability for the agency.

What happens if the cancellation effective date is wrong on ACORD 35?

A wrong effective date - particularly a backdated date - will generate a carrier rejection or an audit inquiry. Carriers generally will not honor backdated cancellations without documented justification (such as a specific state regulation or a prior written agreement). If a cancellation needs to be backdated, contact the carrier's underwriting desk before submitting ACORD 35. The carrier must approve the backdated date in writing. Submitting an unapproved backdated form creates a return premium calculation dispute and potential coverage gaps.

Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.

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