About Short Rate Calculations

The Short Rate Calculator helps insurance professionals calculate refunds when policies are cancelled before their expiration date. Short rate cancellations include a penalty that compensates the insurer for administrative costs and the early termination of coverage.

Key Features:

• Calculates earned and unearned premium based on days in force
• Applies standard short rate penalty factors
• Supports minimum earned premium requirements
• Handles taxable and non-taxable policy fees
• Shows detailed calculation breakdown

Note: This calculator uses standard short rate factors. Always verify with your specific carrier's cancellation provisions.