Definitions for "Short Rate Cancellation"
Related Terms:
Pro rata cancellation, Lapse rate, Return premium, Short rate, Lapse, Pro-rata cancellation, Earned premium, Surrender, Lapsed policy, Universal life insurance, Cash surrender value, Guaranteed renewable policy, Policy lapse, Initial premium, Unearned premium, Flat cancellation, Cancellation, Nonparticipating policy, Guaranteed renewable, Paid-up policy, Surrender value, Renewable term life insurance, Term life insurance, Minimum premium, Adjustable life insurance, Cancelable, Term insurance, Cost of insurance, Reduced paid-up insurance, Paid-up insurance, Annual premium, Policy proceeds, Paid up policy, Life insurance in force, Return of premium, Guaranteed insurability rider, Cancellable policy, Extended term insurance, Non-cancellable, Net amount at risk, Burial insurance, Guaranteed insurability, Unearned premiums, Automatic premium loan, Nonforfeiture values, Whole of life insurance, Convertible term insurance, Life insurance, Single premium policy, Reinstatement provision
A cancellation by the insured that refunds the unearned premium minus administrative expenses.
This is a cancellation with a penalty. Generally when the insured cancels, it is on a short-rate basis. (Exceptoions: insured going into the military or when insured cancels and reinsures in the same company).
The basis that a refund/return premium is calculated when a policy is cancelled midterm at the policyholder's request. Generally, this is 90 percent of the pro-rata return premium, however, an insuring company may also calculate the percentage according to their own guidelines or rate schedules.
Cancellation by the insured of an insurance policy for which the returned unearned premium is diminished by administration costs incurred when the insurance company places the policy on its books.
The termination of a policy or bond by the insured before the end of the policy period, with the earned premium plus administrative expenses retained by the insurance company.
The act of returning a premium to an individual that is not in direct proportion to the number of days remaining in a specified policy period.
Termination of a NYSIF WC policy before its normal expiration date which in turn causes a refund of premium which is less than that which would ordinarily be due to the insured for the proportion of time that coverage was in force.
A policy termination in which the refunded premium is not proportional to the amount of time remaining in the policy period due to the fixed expenses incurred by the company. The insured will generally pay more for each day of coverage than if the policy had remained in force throughout the entire policy period.
Cancellation of an insurance policy by the insured. Return premium is calculated on a short rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses.
A cancellation procedure in which the premium returned to the insured is not in direct proportion to the number of days remaining in the policy period.
see Cancellation.
The cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium which is less than the proportionate part that remains unearned.
the insured receives less return premium than he would on a straight PRO RATA CANCELLATION, because the insurance company charges a penalty on top of earned premium, usually because the insured cancelled the policy mid-term.