If an insured cancels her property-liability insurance and asks for a refund,the premium is:
A)returned on a short rate basis
B)returned on a pro rata basis
C)not returned
D)returned 100% if the cancellation occurs during the first 10 days of the contract

Question

Quizplus · Accepted Answer

When an insured cancels a property-liability insurance policy, the premium is typically returned on a short rate basis, which means the insurer retains a portion of the premium to cover administrative costs.

If an Insured Cancels Her Property-Liability Insurance and Asks for a Refund,the