Definitions for "Pro rata cancellation"
The apportioning of premiums based on what proportionate share of the premium was used up and based on how long the policy was in effect.
If a policy is cancelled before its full term, the insured will receive a full proportional refund of the premium for the unexpired term. But insurers are usually entitled to charge a higher 'short period' rate depending on the circumstances of cancellation.
( annulation au prorata ou résiliation au prorata) An arrangement for the termination of an insurance contract, usually by the insurance company, in which the insured is refunded the exact proportion of the premium which has not yet been used.