Beverly had an insurance policy written through ABC Insurance. Beverly decided about three months into the policy that she no longer wished to have coverage through ABC and found another carrier. Beverly asked ABC Insurance to cancel her policy and return the unearned premium to her attention. ABC did cancel but returned less premium than Beverly expected to get. What method did ABC use in determining how much premium to return to Beverly?

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The topics covered on the Property & Casualty Insurance Exam depend on the specific state board in the United States. Below are some probable categories for this exam. Types of Policies, which includes limited-pay, single-premium life, and ordinary whole life. Parts of a Policy, which includes declarations, agreements, conditions, and exclusions. Policy Riders and Provisions, which includes waiver of premium, accidental death dismemberment, insurance clause, owner’s rights, and payor benefits. Completing the Application, which includes underwriting, warranties, replacement, insurable... Show more

Beverly had an insurance policy written through ABC Insurance. Beverly decided about three months into the policy that she no longer wished to have coverage through ABC and found another carrier. Beverly asked ABC Insurance to cancel her policy and return the unearned premium to her attention. ABC did cancel but returned less premium than Beverly expected to get. What method did ABC use in determining how much premium to return to Beverly?