Pro rata cancellation

{
  "id": "MLC-T-INS-002681",
  "term": "Pro rata cancellation",
  "field": "Insurance and risk management",
  "definition": "The termination of an insurance policy where the unearned premium is returned to the policyholder in proportion to the remaining policy period. This type of cancellation typically occurs when the insurer initiates the termination. For example, if a policy is canceled halfway through its term, half of the annual premium is refunded.",
  "url": "https://mlchart.com/terminology/insurance/pro-rata-cancellation/"
}