Dictionary of Business Terms: pro rata cancellation
pro rata cancellation
revocation of a policy by an insurance company, which returns to the policyholder the unearned premium (the portion of the premium for the remaining period that the policy will not be in force). There is no reduction for expenses already paid by the insurer for that time period.
Dictionary of Insurance Terms: pro rata cancellation
pro rata cancellation
revocation of a policy by an insurance company that returns to the policyholder the unearned premium (the portion of the premium for the remaining time period that the policy will not be in force). There is no reduction for expenses already paid by the insurer for that time period.
