Lost Policy Release

What Does Lost Policy Release Mean?

A lost policy release is a form that a person signs if they have lost their physical insurance policy and wish to terminate the insurance contract.

Insuranceopedia Explains Lost Policy Release

Canceling an insurance policy used to require mailing the physical policy package back to the insurance company. However, in the modern insurance industry, cancellation no longer requires returning the policy. As a result, lost policy releases are typically not necessary in most cases. However, they are still used in certain situations. For example, an auto insurer may ask a policyholder to sign a lost policy release when switching to a different provider. Drivers in this situation often use the move to look at the best car insurance companies and pull updated quotes through a tool that lets them compare car insurance rates from multiple carriers. Once the form is signed, the insurer is no longer liable for reimbursing losses to the policyholder.