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.”