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In Pro Rate cancellation , the insurer will not charge a penalty premium and the return premium is the premium for the unexpired term of the policy.

While in Short Rate cancellation , the insurer charge for a penalty premium as the cancellation is due to insured request . The Insurer keeps a percentage of earned premium to cover its costs.

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โˆ™ 2012-10-15 13:07:47
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Q: What is the difference between Short Rate Cancellation vs Pro Rate Cancellation?
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