The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees. When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided. An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant. The restoring of a lapsed policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage.
Some companies require evidence of insurability and payment of past due premiums plus interest.
The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one once the repairs or purchases have been made. 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.