Refund, Cancellation & Fee Policy

Standard market and surplus lines refunds

Refunds work differently depending on the market. On a standard, admitted policy, a cancellation usually produces a return premium for the unused portion of the term, subject to how the policy earns premium. On a surplus lines or non-admitted policy, refunds can be smaller or unavailable, because these placements often carry a minimum or fully earned premium, wholesale broker fees, and surplus lines taxes and stamping fees that are not refundable. We explain which market your coverage is in, and what that means for refunds, before you bind.

Premium is usually earned over time

Insurance premium is generally earned as the policy provides coverage. If you cancel partway through a term, the carrier calculates how much premium was earned while the policy was in force and refunds the rest, subject to the cancellation method and any minimum earned premium.

Pro-rata and short-rate cancellations

A pro-rata cancellation refunds the unused premium in proportion to the time left on the policy. A short-rate cancellation, sometimes used when the client cancels early, keeps a slightly larger share of premium as an early-cancellation adjustment. Which one applies depends on the carrier, the policy, and who initiates the cancellation.

Minimum and fully earned premium

Some policies carry a minimum earned premium, meaning a set portion is earned as soon as coverage starts and is not refunded even on an early cancellation. Others are fully earned, meaning no return premium is available after binding. These terms are most common on specialty and surplus lines placements, and we point them out before you bind.

Fees

Some placements include a fee in addition to premium, depending on the state and the market. When a fee applies, it is disclosed to you before you agree to proceed. Whether a fee is refundable depends on the fee agreement, state rules, the work performed, and the policy status. Carrier fees, taxes, surplus lines taxes, stamping fees, and other third-party charges are set by the carrier or the state and are often non-refundable. See our partnership disclosure for how fees and compensation work.

Premium financing and installment billing

If you finance your premium, a separate finance company pays the carrier and you repay the finance company over time. On a cancellation, the return premium is typically sent to the finance company first to reduce or pay off the financed balance, and any remaining amount comes back to you. Installment billing directly with a carrier follows the carrier's own rules.

Audit premiums and audit returns

Auditable policies, such as workers compensation and some general liability policies, are adjusted after the term based on your actual payroll or sales. An audit can result in additional premium owed or a return premium, separate from any cancellation refund.

Policy changes and endorsement refunds

Mid-term changes can produce a return premium or additional premium. Removing a vehicle, lowering a limit, or deleting coverage may return premium; adding coverage usually costs more. These adjustments follow the carrier's rules and the policy terms.

Cancellations, and who starts them

A client-requested cancellation follows the carrier's cancellation rules and may require a signed request or specific documentation. A carrier-initiated cancellation, for non-payment or underwriting reasons, follows the notice rules that apply in your state. A flat cancellation, treating the policy as if it never took effect, is usually only available within a short window at the start and is not always allowed. Non-payment cancellations can also carry reinstatement rules and timing.

How we handle premium funds

Like other licensed agencies, Vantage Point Risk maintains a trust account, sometimes called a sweep account, as required by the Department of Insurance. When you pay premium to the agency, those funds are held in trust and then remitted to the insurance company for the amount owed. It is a fiduciary account: the money is handled on your behalf and on the carrier's behalf, not treated as agency income. Where a return premium or refund comes back through the agency, it is returned to you from that account.

How refunds are issued and how long they take

Refunds are usually issued by the insurance company, the premium finance company, or the wholesaler. When a return premium comes back through the agency, it is held in our trust account and returned to you from there. Timing depends on the carrier and the payment method and can take several weeks. We can check on a pending refund and follow up on your behalf.

What we can do, and what we cannot guarantee

What we can do. Explain how refunds and cancellations work for your policy, tell you what to expect before you cancel, submit a cancellation request correctly, and follow up with the carrier or finance company.

What we cannot guarantee. A specific refund amount, a specific refund date, that a policy is refundable at all, or how a carrier or finance company will apply its own rules. Those are set by the carrier, the finance company, the policy terms, and state law.

Questions worth asking before you cancel

Is there a minimum or fully earned premium? Is the cancellation pro-rata or short-rate? Is the policy financed, and will the refund go to the finance company first? Are there non-refundable fees or taxes? Is there a gap in coverage if you cancel before a replacement is in force? We are glad to walk through these with you.

Payment security and website limits

Do not send full card numbers, bank account information, or payment credentials through ordinary email or text. Use the secure payment method or protected form our team provides. Submitting information through the website does not cancel, change, or bind coverage. See our security and privacy page and terms of service. Day-to-day requests run through the service center.

This page is general information about how insurance refunds, cancellations, and fees commonly work. Your actual refund, cancellation terms, and any fees depend on the policy issued, the carrier, the finance company, and applicable state law and documents.