Hi, I'm trying to do an exercise by calculating the pro-rata premium with endorsements but I'm a little confused.
I have an annual premium of $1,500 which a customer paid in full on November 1, 2017.
Part of the premium included an endorsement that was fully earned and paid, that premium was $200 of the $1500.
The insured party sold their house on June 1, 2018 and cancelled their policy on that date.
I have to calculate the returned premium. Here's how I did it but not sure if it's correct:
$1,500/365 = $4.11/day
$4.11 x 212 days . = $871.32
So they returned premium will be $871.32? Is this correct? Feels like I missed something. Do I have to account for the endorsement?
I have an annual premium of $1,500 which a customer paid in full on November 1, 2017.
Part of the premium included an endorsement that was fully earned and paid, that premium was $200 of the $1500.
The insured party sold their house on June 1, 2018 and cancelled their policy on that date.
I have to calculate the returned premium. Here's how I did it but not sure if it's correct:
$1,500/365 = $4.11/day
$4.11 x 212 days . = $871.32
So they returned premium will be $871.32? Is this correct? Feels like I missed something. Do I have to account for the endorsement?