What does Short Rate Premium mean? Read on to discover the definition & meaning of the term Short Rate Premium - to help you better understand the language used in insurance policies.
Short Rate Premium
Short rate premium is the money refunded to the policyholder when they cancel a policy prior to its expiration date. The amount is usually calculated based on a short rate table that combines the inception date, the date of cancellation, and the premium paid.
We hope the you have a better understanding of the meaning of Short Rate Premium.