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33. What Are Your Mexican Insurance Policy Cancellation Rules?



Cancellation rules are regulated by the Mexican Department of Insurance.

Each Mexican insurance policy in the industry has three rating categories. Daily rates, 6-Month rates and Annual rates.

Each Mexican insurance policy that is daily rated can be cancelled at any time during the policy period. The returned premium is pro-rated.

Each Mexican insurance policy, rated on a 6 month basis, can be cancelled anytime within the first 20 days. After the first 20 days the policy is fully earned and can not be cancelled.

Any yearly Mexican insurance policy, rated on an annual basis, can be cancelled anytime within the first 20 days. After 20 days the policy can not be cancelled.

Cancellation during the first 20 days of a 6-Month or Annual Mexican insurance policy is OK. The policy is re-rated on a daily basis, and your return premium will be pro-rata.

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