In which scenario is the effective date of a rewrite transaction typically determined?

The effective date of a rewrite transaction is generally determined to be the same as the cancellation effective date or later because this ensures a seamless transition between the old and new policies. When an insurer cancels a policy and issues a rewrite, it is typically done to maintain continuity in coverage, and hence, the effective date must align with the cancellation to prevent any lapses in coverage for the insured.

Having the effective date match or follow the cancellation effective date helps both insurers and policyholders manage their obligations and expectations around coverage. This approach also simplifies the administrative processes involved, ensuring that billing, underwriting, and claims handling are consistent and coherent during the transition period.

In contrast, determining the effective date at other times, such as near the end of the policy term, when a new underwriting decision is made, or whenever the insured agrees to the changes, could lead to complexities or gaps in the coverage. Therefore, option B accurately captures the industry practice for handling effective dates during rewrites.