Short Rate Cancellation

A policy termination in which the refunded premium is not proportional to the amount of time remaining in the policy period due to the fixed expenses incurred by the company. The insured will generally pay more for each day of coverage than if the policy had remained in force throughout the entire policy period

See Also: Personal Auto Policy; Personal Injury Protection; Property Damage Liability Insurance; Split Limit; Stacking of Limits;

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