If I Cancel a Policy Will I Get A Refund?

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Maybe, Maybe Not.  It all depends on the type of policy it is as well as the market that the risk was written in. In cases where the policy is in the ‘standard’ market and you have overpaid premiums at the time you choose to cancel coverage, you should be entitled to a refund of those premiums which have been overpaid.  These are referred to as ‘unearned premium’ policies and these refunds are sent from the insurer directly to you and it may take anywhere from one to five weeks to receive these payments.  If the risk was written in the ‘Surplus Lines’ market, however; you may not be entitled to a refund depending upon the circumstances.  ‘Surplus Lines’ polices all include a ‘minimum earned premium’ (normally 25%) plus fully-earned policy fees, stamping fees, taxes, and other miscellaneous charges.  Whether or not you are entitled to a refund from one of these policies will depend upon the specific policy requirements, the ‘Minimum Earned Premium’ indicated in the policy, the amount you have already paid versus what is owed, and the nature of the cancellation.

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