Pro-Rata Cancellation

Written by  //  June 23, 2011  //  Insurance Glossary: N-S, Insurance Terms  //  Comments Off on Pro-Rata Cancellation

When policyholders cancel a policy, they are entitled to the unearned portion of the premium for the unused period of the policy. For example, if you paid for a six-month policy, and cancel the policy after three months, you are entitled to a refund for the three months of coverage that you didn’t receive.

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