How must an insurer communicate the mid-term cancellation of a packaged policy to the insured?

The insurer must communicate the mid-term cancellation of a packaged policy to the insured by recorded delivery letter because this method provides a formal and verifiable means of communication. Using a recorded delivery letter ensures that the insured has proof of the correspondence, which can be important for both parties in instances of disputes regarding the cancellation. It also allows the insured adequate time to absorb the information and consider their next steps, as they will have a physical document to review.

While email is a quicker form of communication, it may lack the formal recognition and validity that a recorded delivery letter provides, especially in legal or regulatory contexts. Phone calls and face-to-face communication, although personal, do not offer the same level of documentation and can lead to misunderstandings, as there may not be a written record of what was communicated. Thus, for significant matters such as policy cancellations, the recorded delivery letter is the most appropriate method.