Short Rate Penalty - Florida Agent

[AverageJoe]

Scenario:

Have coverage bound with carrier 1 for a future effective date: 5/15/2012

Decide to place coverage with carrier 2 , but because coverage was "bound" with carrier 1,

is it subject to short rate penalty?

Yay - Nay?

 

[djs]

Personal or commercial?

A lot of commercial policies have minimum earned premiums.
Not sure about Florida, but in CA, for personal lines few carriers have short rate anymore. Still exists in the commercial world though.

With a future effective date, the policy has never gone in force, so its unlikely there will be a shortrate charge. You would have to check with the carrier though. This would be like a policy that automatically renews, but you cancel it on the renewal, except its a new policy.

Only way to get a real answer though is to call the carrier.

Dan