Also known as early cancellation for a special reason. Justified reasons for extraordinary cancellation by the insurance company are

• → Increase in risk
• Breach of obligations by the → Policyholder
• Bankruptcy of the → policyholder
• Non-payment of the subsequent premium

Within one month of becoming aware of the aforementioned points, the → Insurer entitled to give extraordinary notice of termination.

In the context of → Property insurance the → Insurer and the → Policyholder exercise the right of extraordinary cancellation, provided the following circumstances exist:

• Sale of the insured item
• Occurrence of a → Claim
• Premium increase in accordance with → Premium adjustment clause

Source reference: See VDT publication "VDT article series part 5 l Glossary" and the source indicated there.