Cancellation is the termination of an insurance contract before its scheduled expiry date, which may be initiated by either the insured or the insurer subject to the requirements of the Insurance Contracts Act 1984 (Cth). The insured may generally cancel at any time and is entitled to a pro-rata refund of premium for the unexpired period (less any applicable administration fees). The insurer's right to cancel is more restricted and requires specified grounds such as non-payment of premium, fraud, misrepresentation, material change in risk, or non-compliance with policy conditions, along with prescribed notice periods (typically 3 business days for non-payment, or longer for other grounds). Cancellation does not affect the insurer's liability for claims arising from events occurring before the cancellation date (subject to policy terms), but claims-made policies present particular risks as cancellation without purchasing extended reporting period coverage may leave prior acts uninsured.