Business, Legal & Accounting Glossary
A fee incurred when an insured cancels a policy during a coverage period. The penalty is deducted from any returned premium the insured is owed. For example, an auto policy may require a 10% short rate penalty on unearned premiums if a policy is cancelled by the insured with two weeks remaining during a quarterly coverage period.
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This glossary post was last updated: 16th November, 2021 | 0 Views.