What is pro rata cancellation?
Pro Rata Cancellation — the cancellation of an insurance policy or bond with the return of unearned premium credit being the full proportion of premium for the unexpired term of the policy or bond, without penalty for interim cancellation. What is pro rata distribution in insurance?
What does pro rata mean in insurance?
In the insurance industry, pro rata means that claims are only paid out in proportion to the insurance interest in the asset; this is also known as the first condition of average. What does it mean when insurance is prorated? Proration — the adjustment of policy benefits due to a change of exposure or existence of "other insurance."
What is a pro rata modification to a car?
These modifications are changes that alter your car from the manufacturer’s standard specifications. If an insurance policy is cancelled “pro rata”, you only owe the earned premium for the time the policy was in force (there is no short rate cancellation penalty.)