An amount, equal to a fraction of the premium, which is given back to the insured in the case of a cancellation, an adjustment to the rate, or an overpayment of an advance premium.
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Portion of the premium returned to an insured as a result of a Policy cancellation, rate adjustment or a calculation that a deposit premium was unnecessarily large.
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UK: Refund to the insured by law (e.g. liquidation of insurer) or by contract. If the risk does not attach the insurer runs no risk and must return the premium. Once the risk has attached the insured is not entitled to any return except under a contractual provision, e.g. adjustable premium, cancellation or laying up of vessels or vehicles.