Short rate table

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A short rate table is a table used to calculate the earned premium for a policy that is cancelled before the expiration date of an insurance policy. This is a penalty method called short rate or old short rate and is often used when the policy is cancelled at the policy holder's request.

An insurance policy may be canceled before the end of the policy period. This has the effect of ending the policy coverage on the date of the policy cancellation.

The following table is an example of this table for a policy that has a 365-day term and show the percentage of premium retained by the insurance company based on the number of days that policy is in effect.

In this case, penalty starts off initially at 25% of the annual premium and increases up to 100% by the end of the policy term. But not all insurers have a 25% minimum retained premium.

Days%Days%Days%Days%Days%Days%Days%Days%Days%Days%
1253825753111241149511866122369260772978633494
2253925763111341150521876122470261782988633594
3254025773211442151521886222570262782998633694
4254125783211542152521896222670263783008633794
5254225793211642153521906222770264783018633895
6254325803211743154531916222870265793028733995
7254425813311843155531926322971266793038734095
8254525823311943156531936323071267793048734195
9254625833312043157541946323171268793058734295
10254725843412144158541956323271269793068834396
11254825853412244159541966323372270803078834496
12254925863412344160541976423472271803088834596
13255025873412444161551986423572272803098834696
14255125883512545162551996423672273803108834797
15255225893512645163552006423772274813118934897
16255325903512745164552016523873275813128934997
17255425913512846165562026523973276813138935097
18255526923612946166562036524073277813148935197
19255626933613046167562046524173278813159035298
20255726943613146168572056524274279823169035398
21255826953713247169572066624374280823179035498
22255927963713347170572076624474281823189035598
23256027973713447171572086624574282823199035699
24256127983713547172582096624674283833209135799
25256227993813648173582106724775284833219135899
262563281003813748174582116724875285833229135999
272564281013813848175582126724975286833239136099
2825652810238139491765921367250752878332492361100
2925662910339140491775921467251762888432592362100
3025672910439141491785921568252762898432692363100
3125682910539142491796021668253762908432792364100
3225692910640143501806021768254762918432892365100
3325703010740144501816021868255762928532993
3425713010840145501826021969256772938533093
3525723010940146501836122069257772948533193
3625733011041147511846122169258772958533293
3725743111141148511856122269259772968533394

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