Insurance WAEC

When a policy is canceled before its expiry date, what is owed to the insured is?

A. earned premium
B. unearned premium
C. return premium
D. unpaid premium

Correct Answer: Option C

C. return premium

Explanation

Return Premium: An amount, equal to a fraction of the premium, which is given back to the insured in the case of a cancellation, an adjustment to the rate, or an overpayment of an advance premium.

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