Cancellation Policy with Endorsment Question?

tandao

New Member
2
Hi, first time poster and have a few newbie questions. I posted this in auto forum also, i think may be get more reply in here.

I have a general question about when a policy with endorsement is cancel how return premium and commission is calculated?

Example: An annual policy Premium of $1000, and in mid term an endorsement Premium of $500.

When this policy is cancel on 3/4 of the term. How would the return premium & commission be calculated? Do Insurance company calculate return premium for the Policy separately from the Endorsement? or They will calculate a single return premium and commission for the Policy and Endorsement combine together?

In another word, how would insurance company paid commission for the policy with endorsement?

- Do they paid commission for the policy separately from the endorsement?

When the policy with endorsement is cancel, how would the return commission be calculated?

- A return portion of the policy separate from the return portion of the endorsement? or It will be total return for the Policy and Endorsement together?

Is there a Standard way to calculated cancellation with endorsement or each insurance company do differently?

Thanks for your time to answer my newbie questions.
 
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