What should you advise an insured who sold his auto and contacted you regarding his OAP 1 policy?

Advising the insured to send a cancellation form for a pro-rata refund is appropriate because when an insured sells their vehicle, they are no longer exposed to the risk associated with that vehicle. In most auto insurance policies, including an OAP 1 policy, the insurer typically allows for the cancellation of coverage and provides a refund based on the pro-rata method. This means the insured receives a refund for the portion of the premium that remains unearned after the policy is canceled.

By processing a cancellation with the necessary form, it formally documents the cancellation request and ensures that all parties are aware of the changes to the policy. Furthermore, a pro-rata refund calculation considers the time left on the policy, which is a standard practice in the insurance industry, ensuring the insured doesn't pay for coverage they no longer need.

This approach not only follows the procedural requirements but also maintains transparency and trust between the insurer and the insured, reflecting responsible management of the insurance contract.