Pro Rata & Short Rate

Premium Cancellation Calculator

Effective Date The date the insurance policy coverage begins.

Cancellation Date The date the policy is being cancelled. Must be on or after the effective date.

Policy Term The duration of the policy. The calculator will determine the exact number of days based on the effective date, accounting for leap years.

Annual Premium ($) The total premium for the full policy term before any cancellation adjustments.

Short Rate Penalty (%) A penalty applied to the return premium when the insured initiates the cancellation. Typically 10%. The carrier keeps this portion.

Pro Rata & Short Rate

Policy Period Summary

Pro Rata

Short Rate