Process Cancellation
POL-CA-2025-33012 · Alvarez Logistics LLC · Commercial Auto Fleet
Refund Calculation
Annual Premium$18,400
Earned (to Aug 1)$7,514
Unearned (pro-rata)$10,886
Refund Due$10,886
Calculation Methods
Pro-Rata
Refunds the full unearned premium with no penalty. Default for voluntary and carrier-initiated cancellations.
Short-Rate
Refunds unearned premium less a retention penalty. Applied to certain early voluntary cancellations.
Flat Cancellation
Full 100% refund of premium with no earned charge, as if the policy never took effect. Used within the free-look period (typically 10 days from issue) or when a policy is voided at inception.
Voluntary cancellation uses pro-rata refund. Short-rate applies a penalty and is used for certain involuntary reasons. Flat cancellation returns 100% of premium within the free-look period.
Involuntary cancellations require a 14-day notice in this jurisdiction. A cancellation notice document will be generated and delivery-tracked for legal proof.