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Who receives notice. Each consumer entitled to rescind must be given two copies of the rescission notice and the material disclosures. In a transaction involving joint owners, both of whom are entitled to rescind, both must receive the notice of the right to rescind and disclosures.
This means the policyholder should get back any premiums they paid to the insurance company. By contrast, when a policy is canceled, the only money refunded is that for the remaining portion of the term. Rescission is normally done by the insurance company, and involves: Giving notice of the rescission to the insured.
The purpose of contract rescission is to rewind time and put the parties in the position they were in before the contract. Contract rescission must be done entirely. To rescind a contract you must cancel the whole contract.
Cancellation of a contract. Rescission may be unilateral, as when a party rightfully cancels a contract because of another party's material breach. Rescission can also be mutual, as when the contracting parties agree to discharge all remaining obligations.