The "cancellation period," is a provision written into most bond forms that requires surety companies to provide a certain amount of advanced "notice of cancellation" (or "NOC") before they can actually cancel the bond.
Every bond requirement is different based on the rules and regulations set forth by the state agency or other entity requiring the bond (also known as the "obligee"). Put another way, the cancellation period is the number of days' notice the obligee requires before it will recognize the bond as canceled.
Although the exact cancellation period depends on the legal language outlined on the specific bond form at hand, common cancellation periods include:
- 15 days
- 30 days
- 45 days
- 60 days
- 90 days
A bond's cancellation period helps guide the renewal process. If a bond has not been renewed within the cancellation period immediately preceding the expiration date, the surety company will send out a notice of cancellation. This is why notices of cancellation (NOCs) are issued and sent before a bond expires - because the obligee requires advanced written notice of the cancellation before it actually goes into effect.
Note: Some bonds do not have a cancellation period because they cannot be canceled without documentation from the obligee formally closing out the obligation. These bonds are known as “Continuous until Released."
If you need help renewing or canceling a bond, call 1 (800) 308-4358 or email firstname.lastname@example.org, and one of our friendly representatives will walk you through the process.