What do we call the termination of an insurance policy before its end date?

The termination of an insurance policy before its end date is referred to as cancellation. This process involves the policy being ended prior to the scheduled termination, which can occur at the request of either the insurer or the insured. Cancellation can arise for various reasons, such as non-payment of premiums, violations of policy terms, or mutual agreement between the policyholder and the insurance company.

Nonrenewal, on the other hand, refers to the decision not to renew a policy when it comes up for renewal after its term has ended, rather than ending it prematurely. Expiration is the natural conclusion of an insurance policy at the end of its term. Forfeiture typically involves losing rights or benefits under the policy due to certain actions or conditions, but it does not specifically denote an early termination initiated by either party. Thus, cancellation is the correct term that precisely describes the early termination of an insurance policy.