Proration

{
  "id": "MLC-T-INS-002732",
  "term": "Proration",
  "field": "Insurance and risk management",
  "definition": "Distributing an amount in proportion to a related factor. In insurance it most often means pro rata premium, where a charge or refund follows the number of days a policy was in force after a mid-term change or cancellation. The same principle shares a loss among several policies covering one risk, each insurer paying the share its limit bears to the total of all applicable limits.",
  "url": "https://mlchart.com/terminology/insurance/proration/"
}