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Short Rate Cancellation

Posted on May 18, 2017 by GoodInsurance

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. In effect, the insured has paid more for each day of coverage than if the policy had remained in force for the full term. Contrast with Pro Rata Cancellation. (G)

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Pro Rata Cancellation
Single Limit
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