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About: Short rate table     Goto   Sponge   NotDistinct   Permalink

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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. 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.