Question

What happens to the premium paid when the contract is cancelled *​

Answer 1

Explanation:

Premium Payment for Cancelled Insurance Policy Does Not Create Reinstatement for Time Period Prior to Receipt of the Payment. ... An automobile insurance premium is past due and the cancellation date has arrived. A few days after the cancellation date, the insured is involved in an accident.

Answer 2

Answer:

Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. ... Earned premium will not be returned to the insured if the policy is cancelled.

Explanation:

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