What does Pro Rata Cancellation mean? Read on to discover the definition & meaning of the term Pro Rata Cancellation - to help you better understand the language used in insurance policies.
Pro Rata Cancellation
A pro rata cancellation is a cancellation on an insurance policy in which the policyholder is fully refunded for premiums that have been paid in advance. It is an alternative to a short rate cancellation in which the refund incurs a penalty.
We hope the you have a better understanding of the meaning of Pro Rata Cancellation.