Erin cancels her individual health insurance policy before the end of the policy term. The insurer will:

Insurance

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Erin cancels her individual health insurance policy before the end of the policy term. The insurer will:

a. Return a portion of Erin’s unearned premiums on a short rate basis

b. Return all of Erin’s earned premiums on a short rate basis

c. Return a portion of Erin’s unearned premiums on a pro rata basis

d. Return all of Erin’s earned premiums on a pro rata basis

Answer: a. Return a portion of Erin’s unearned premiums on a short rate basis

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