Short-rate cancellation

{
  "id": "MLC-T-INS-003079",
  "term": "Short-rate cancellation",
  "field": "Insurance and risk management",
  "definition": "A method of calculating the premium refund when an insurance policy is canceled by the insured before its expiration date. The insurer retains a larger portion of the premium than if the policy had run its full term or been canceled by the insurer. This penalty compensates the insurer for administrative costs and the loss of expected premium income.",
  "subject": "Workers Compensation",
  "url": "https://mlchart.com/terminology/insurance/short-rate-cancellation/"
}