What must be done to rewrite a policy?

To rewrite a policy, it is necessary to cancel the original policy. The concept of a rewrite often pertains to creating a new policy to replace the existing one, which is typically achieved through cancellation of the old policy. This process ensures that the new policy reflects updated terms, conditions, or coverages that were not applicable under the previous policy. The cancellation serves as the formal mechanism to terminate the original policy, thus allowing for the issuance of a new one without overlapping coverage.

Maintaining the policy active or amending it would not fulfill the requirements for a rewrite, as these actions do not effectively establish a new policy framework that is distinct from the original. Therefore, the act of cancelling is crucial to successfully rewriting a policy and ensuring compliance with the necessary insurance regulations and practices.