What happens if I cancel mortgage protection insurance?

[HomeBuyer22]

In order to draw-down on funds for a new mortgage, it is a requirement to have home insurance and mortgage protection insurance in place.
I'm wondering what would happen if post draw-down, the mortgage protection policy was cancelled?
When I went through the process, the lending institution had to be noted as a beneficiary on the home insurance, but not on the mortgage protection policy. Obviously, you could leave your dependents / estate with a liability if you die before the mortgage is paid off, but if there are other assets that cover this, are there any other implications of cancelling your mortgage protection policy?
Do the lending institution have any way of checking if the policy is in place, or do they even care?

 

[Monbretia]

Some lenders assign the mortgage protection policy to them so that the pay out goes to them if there is one and they are notified if payments stop. With an assigned policy you can't cancel it without permission from the lenders, well you could if you cancelled the direct debit I suppose.

However not all banks assign them so if you cancel I can't see how they would find out.

 

[Protocol]

I am under the impression all MPP are assigned to lenders?

At cancellation, the insurer would inform the lender.

 

[Monbretia]

Definitely not all are, UB used to do it, then they stopped, then they started again but I don't know if they are doing it at the moment.

I had two policies from way back both assigned to UB and I was able to cancel both recently without any letter of no further interest from the bank, I was really surprised, it was originally a FF policy, can't remember who they are now but they said they no longer need it and I could cancel away even though they are assigned and the mortgage is still active.