# Short rate table

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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