What is the correct timeline for an insurer to provide a pro rata refund of unearned premium after cancellation?

In Washington, when an insurance policy is canceled, the insurer is required to provide a pro rata refund of any unearned premiums to the policyholder. This refund must be issued within a specific timeline to ensure that the insured receives their funds in a timely manner.

The appropriate timeline for this pro rata refund is within 45 days of the cancellation. This regulation is intended to protect consumers by ensuring that they are not left waiting indefinitely for funds that are rightfully theirs after they have canceled their insurance policy. The 45-day period allows insurers sufficient time to process the cancellation, calculate the amount due, and issue the refund accordingly.

Understanding the importance of this timeframe helps in recognizing the rights of consumers regarding unearned premiums and the responsibilities of insurers in honoring these commitments promptly.