What is the term for the termination of a policy before its expiration date by either party?

The term used for the termination of a policy before its expiration date by either party is "cancellation." This process allows either the insurer or the insured to end the policy prior to its predetermined expiration date. Cancellation can occur for various reasons, such as non-payment of premiums by the insured or a breach of policy terms, and it usually requires a formal notice period as specified in the policy contract.

This understanding of cancellation is crucial as it reflects the dynamic between the insurer and the insured and addresses situations where the continued coverage is no longer feasible or desired by either party. In contrast, terms like termination and suspension do not specifically denote the same legal procedures associated with policy cancellation. Additionally, non-renewal refers to the decision not to renew a policy at the end of its term, which is distinct from early cancellation.