ACORD 35 (Cancellation Request)
A standard ACORD form used by brokers to request policy cancellation from a carrier on behalf of the insured.
What It Is
The ACORD 35 is the standard form for requesting the cancellation of an insurance policy. It documents the insured's request to cancel, the effective date of cancellation, and whether the cancellation is flat, pro-rata, or short-rate. The form requires the insured's signature confirming the cancellation request.
This form is used across all commercial lines and serves as the formal written documentation that the cancellation was initiated by the insured, not the carrier. It is critical for establishing that the broker acted on the client's instructions.
The ACORD 35 must be completed accurately to avoid disputes about whether coverage was in force at the time of a loss.
Why It Matters for Brokers
Cancellation requests are one of the highest-risk transactions in a brokerage because they directly terminate coverage. If a broker cancels the wrong policy, uses the wrong effective date, or fails to obtain the insured's signature, the agency faces significant E&O exposure. Proper documentation through the ACORD 35 protects the broker by creating a paper trail showing the insured's explicit consent to cancel. Without this form, a client who suffers a loss after cancellation may claim they never authorized it.
Real-World Example
A client sells their commercial building and instructs the broker to cancel the property policy effective at closing on March 15. The broker completes the ACORD 35 with the March 15 effective date, obtains the insured's signature, and submits it to the carrier. Two months later, the former owner claims they never authorized the cancellation. The signed ACORD 35 proves the broker acted properly.
Common Mistakes
- 1Processing a cancellation without obtaining the insured's signature on the ACORD 35, leaving no proof of authorization.
- 2Using an incorrect cancellation effective date that creates a gap in coverage or triggers an unintended short-rate penalty.
- 3Failing to verify that replacement coverage is in force before canceling the existing policy, leaving the client uninsured.
How brokerageaudit.com Handles This
BrokerageAudit's workflow engine requires a completed ACORD 35 with documented authorization before any cancellation can be processed. The system flags cancellation requests where no replacement policy has been confirmed, preventing accidental coverage gaps.