New York Independent Adjuster, Motor Vehicle No‑Fault and Workers’ Compensation Health Services Adjuster (Series 17-72) Practice Test

The notice of cancellation is a formal document issued by an insurer to formally communicate its intention to terminate an insurance policy. This document outlines the reasons for the cancellation, the effective date of cancellation, and any pertinent information the insured needs to know. It serves as legal notification that the insurance coverage will no longer be effective, allowing the insured to understand their coverage status and take necessary actions, such as seeking new insurance or understanding their responsibility in case of an insured event post-cancellation.

Other documents, such as policy endorsements, typically modify an existing policy rather than rescind it. A policy summary provides an overview of coverage but does not indicate termination. Similarly, a coverage declaration outlines the specifics of what is included in the policy but does not serve as a declaration of intent to rescind it. The clarity and purpose of a notice of cancellation make it the correct answer in this context.