Cancelling a Policy with a Pro-rated Premium

Cancelling a Policy with Pro-rated Premium from the Endorsements tab of a Policy

Applies to:

  • Producers [/ Underwriters]
  • Assistants
Last Updated: January 2021

This article explains how to cancel a Policy with a Pro-rated Premium from the Endorsements tab of a Policy

Cancelling a Policy with a Pro-rated Premium

Pro-rated premiums are automatically calculated when cancelling policies. Unlike regular endorsements, cancellation endorsements do not require you to issue Endorsement 0 first.

  1. Navigate to a policy and select the Endorsements tab.
  2. On the left, click Cancel Policy.

    The Endorsement pop-up opens.

  3. Fill in the fields to populate the endorsement document. The Endorsement Type is set to Cancellation by default.
    Note: The text in the Description field is pulled into the endorsement document.
  4. Click Continue to Editor.

    The Policy Cancellation page opens. This page lets you set the cancellation calculation method and automatically calculates the return premium using the Pro Rata Factor so the cancellation invoice can be generated

  5. Use the drop-down below Short Term Premium Method to select the cancellation calculation method.
  6. Click Add to add the pro-rated premium line item.
  7. Fill in the line item. Ensure the first drop-down is set to Premium and the second drop-down is set to the correct LOB, then add the pro-rated premium in the text box on the right.
    Note: For return premiums, use a negative sign (-) when entering the premium.
  8. After the premium details are entered, the return taxes and fees are automatically calculated, if applicable.
  9. Review the totals below your invoice line item, then click Save Endorsement at the bottom of the page. 

  10. Edit, issue, or delete the endorsement.