The apportioning of premiums based on what proportionate share of the premium was used up and based on how long the policy was in effect.
If a policy is cancelled before its full term, the insured will receive a full proportional refund of the premium for the unexpired term. But insurers are usually entitled to charge a higher 'short period' rate depending on the circumstances of cancellation.
( annulation au prorata ou résiliation au prorata) An arrangement for the termination of an insurance contract, usually by the insurance company, in which the insured is refunded the exact proportion of the premium which has not yet been used.
Termination of a policy by the insurer, for which the return premium due the policy holder is full proportionate part for the unexpired term. In other words, the pro rata refund is not a "short-rate" return.
When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided. For example:an annual policy with premium of $1,000 is cancelled after 40 days of coverage at the company's election. The earned premium would be calculated as follows:40/365 days X $1,000=$110 X $1,000=$110.
Revocation of a policy by an insurance company that returns to the policyholder the unearned premium. There is no reduction for expenses already paid by the insurer for that time period.
What happens when you cancel your policy before it expires. Pro Rata refers to the amount of money that may be refunded to you based on the amount of time left on your policy that you have already paid for.
A method of calculating a return premium when an insurance company cancels a policy before its expiry date. The full proportionate part due for the unexpired term is returned to the insured.
A cancellation by the insurer that refunds an amount equal to the daily earned premium multiplied by the days remaining in the policy.
Termination of an insurance contract before the policy expiration date on which the premium returned to the insured person is adjusted in proportion to the amount of time the policy was in effect.
Cancellation of the policy by the insurance company. All unearned premium is returned to the insured.
Calculation of the premium charge for a cancelled policy based upon the exact time the protection had been in force.
The cancellation of an insurance policy with the return premium being the full proportion of premium for the unexpired term of the policy, without penalty for early cancellation.
In the event of cancellation of a policy the insured would receive a refund for the unexpired period which would be calculated as a rateable percentage of the premium. However if the policy is cancelled by the insured, insurer will not refund pro rata portion of the premium. This is termed as short period rate cancellation.
the termination of an insurance contract or bond, the premium charge being adjusted in proportion to the exact time the protection has been in force. (See SHORT RATE)
Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy.