Cancellation of the insurance contract with the premiums adjusted to reflect the amount of time the contract has been in effect.
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REFERENCE: See: Cancellation.
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When an insurance contract is terminated mid-term by an insurer, the return premium will usually be calculated on a pro rata basis. For example this means that if a 12 month contract is cancelled 4 months before its expected expiry date then the insured would receive back 4/12 of its premium.