Flat Rate: The insured will receive their entire premium as a refund if their policy is canceled flat. It will be as if the policy never existed in the first place, as the insurance company is not accepting the risk.
Pro-rate: (Proportional Ration) Pro-rate or pro-rata cancellations are the most common type of cancellation. The insured will receive a partial refund of their premium, calculated based on the amount of time left in the policy period.
Short Rate: A short-rate cancellation is calculated similarly to a pro-rate cancellation, but it also includes an additional fee. The fee is an administrative fee for expenses incurred by the company and is typically 10 percent of the pro-rated amount.
We at Selectsys understand that processing cancellations is a high priority, and we ensure timeliness and precision in handling them.