When the policy is terminated prior to the expiration date at the policyholder’s request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish its own short-rate schedule.

A licensed employee of a fire and casualty agent or broker who may act for the agent or broker in some circumstances.

Coverage for property damage caused by untimely discharge from an automatic sprinkler system.

An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.

An arrangement whereby one party becomes answerable to a third party for the acts of a second party. Customarily an insurance company, the party in a suretyship arrangement who holds himself responsible to one person for the acts of another.

A bond which the surety agrees to answer to the obligee for the non-performance of the principal (also known as the obligor).

Stated in its simplest terms, suretyship embraces all forms of obligation to pay debts or answer for the default of another.

To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time of surrender.