Finance:Short rate table

A short rate table is a table used to calculate the earned premium for a policy that is cancelled before the expiration date of an insurance policy. This is a penalty method called short rate or old short rate and is often used when the policy is cancelled at the policy holder's request.

The following table is an example of this table for a policy that has a 365-day term and show the percentage of premium retained by the insurance company based on the number of days that policy is in effect.

In this case, penalty starts off initially at 25% of the annual premium and increases up to 100% by the end of the policy term. But not all insurers have a 25% minimum retained premium.

Days	%	Days	%	Days	%	Days	%	Days	%	Days	%	Days	%	Days	%	Days	%	Days	%
1	25	38	25	75	31	112	41	149	51	186	61	223	69	260	77	297	86	334	94
2	25	39	25	76	31	113	41	150	52	187	61	224	70	261	78	298	86	335	94
3	25	40	25	77	32	114	42	151	52	188	62	225	70	262	78	299	86	336	94
4	25	41	25	78	32	115	42	152	52	189	62	226	70	263	78	300	86	337	94
5	25	42	25	79	32	116	42	153	52	190	62	227	70	264	78	301	86	338	95
6	25	43	25	80	32	117	43	154	53	191	62	228	70	265	79	302	87	339	95
7	25	44	25	81	33	118	43	155	53	192	63	229	71	266	79	303	87	340	95
8	25	45	25	82	33	119	43	156	53	193	63	230	71	267	79	304	87	341	95
9	25	46	25	83	33	120	43	157	54	194	63	231	71	268	79	305	87	342	95
10	25	47	25	84	34	121	44	158	54	195	63	232	71	269	79	306	88	343	96
11	25	48	25	85	34	122	44	159	54	196	63	233	72	270	80	307	88	344	96
12	25	49	25	86	34	123	44	160	54	197	64	234	72	271	80	308	88	345	96
13	25	50	25	87	34	124	44	161	55	198	64	235	72	272	80	309	88	346	96
14	25	51	25	88	35	125	45	162	55	199	64	236	72	273	80	310	88	347	97
15	25	52	25	89	35	126	45	163	55	200	64	237	72	274	81	311	89	348	97
16	25	53	25	90	35	127	45	164	55	201	65	238	73	275	81	312	89	349	97
17	25	54	25	91	35	128	46	165	56	202	65	239	73	276	81	313	89	350	97
18	25	55	26	92	36	129	46	166	56	203	65	240	73	277	81	314	89	351	97
19	25	56	26	93	36	130	46	167	56	204	65	241	73	278	81	315	90	352	98
20	25	57	26	94	36	131	46	168	57	205	65	242	74	279	82	316	90	353	98
21	25	58	26	95	37	132	47	169	57	206	66	243	74	280	82	317	90	354	98
22	25	59	27	96	37	133	47	170	57	207	66	244	74	281	82	318	90	355	98
23	25	60	27	97	37	134	47	171	57	208	66	245	74	282	82	319	90	356	99
24	25	61	27	98	37	135	47	172	58	209	66	246	74	283	83	320	91	357	99
25	25	62	27	99	38	136	48	173	58	210	67	247	75	284	83	321	91	358	99
26	25	63	28	100	38	137	48	174	58	211	67	248	75	285	83	322	91	359	99
27	25	64	28	101	38	138	48	175	58	212	67	249	75	286	83	323	91	360	99
28	25	65	28	102	38	139	49	176	59	213	67	250	75	287	83	324	92	361	100
29	25	66	29	103	39	140	49	177	59	214	67	251	76	288	84	325	92	362	100
30	25	67	29	104	39	141	49	178	59	215	68	252	76	289	84	326	92	363	100
31	25	68	29	105	39	142	49	179	60	216	68	253	76	290	84	327	92	364	100
32	25	69	29	106	40	143	50	180	60	217	68	254	76	291	84	328	92	365	100
33	25	70	30	107	40	144	50	181	60	218	68	255	76	292	85	329	93
34	25	71	30	108	40	145	50	182	60	219	69	256	77	293	85	330	93
35	25	72	30	109	40	146	50	183	61	220	69	257	77	294	85	331	93
36	25	73	30	110	41	147	51	184	61	221	69	258	77	295	85	332	93
37	25	74	31	111	41	148	51	185	61	222	69	259	77	296	85	333	94