canceled policies

  • Policies which are canceled by the insurance company before the incontestable clause goes into effect. Generally, if a company cancels a contract (policy), the agent must repay to the company the commission on the premium returned to the policyholder.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).