The charge required for Insurance or bonds taken for less than one year. Short term rates are usually proportionately higher than the annual term rates since it involves the same volume of labour and charges for acceptance of risk and Insurance of Policy documents.

A type of cancellation wherein the insured is not refunded in proportion to the amount of coverage days left in the policy’s term. The end result of this is the insured paying more for the days of coverage they receive than they would have if they had kept the policy all along.
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See: Cancellation.
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Termination of an Insurance Policy at the request of the insured prior to its expiration date; the Policy provides that the Insurer gets to keep more than a pro rata portion of the premium. The Insurer keeps an extra portion of the premium as an increased charge because of the fixed expenses incurred by the Insurer in Writing and servicing the Policy the insured has cancelled. Compare with “pro-rata cancellation.”

The premium associatd with a policy issued for a shorter than usual policy term.

A schedule of less than pro-rata premiums that will be refunded if an insured cancels a contract before the end of its term. The less than pro-rata refund is justified by the fact that most of the insurer’s expenses of selling insurance are incurred at the beginning of a policy period.

Cargo manifested but not loaded.

Additional coverage that may be purchased under a claims-made policy that responds to losses that may have occurred during a policy period but are not reported until after the end of the policy period. Usually available for no longer than a year.

A personal accident or health insurance policy that pays benefits to a disabled person for a specified period not exceeding two years and usually not more than six months.