The insurance industry has long developed rich relationships with insurance brokers and agents who, in turn, use social connections to attract new customers and keep them happy. However, insurance customers have come to expect more up-to-the-minute personal interaction than industry representatives can accommodate. Hence, among the digital and mobile tools to maximize customer service skills,
. expertise and relationships with customers, the introduction of the online pro rata wheel calculator.Pro rata is a method for calculating the terms of cancelled insurance policies that includes no additional penalties. It divides the number of days remaining in the policy by the total number of days in the policy. A wheel calculator is a device used to make calculations, factoring in policy time periods. The concentric discs or wheels are rotated to line up certain time periods with associated results. A pro rata wheel calculator determines the time left on an insurance policy when compared with the appropriate return.Many insurance companies use a short rate pro rata equation on wheel calculators, which subtracts a percentage fee (penalty) on the remaining premium for the cancellation. The longer the policy stays in effect, the lower the fee. Short rate 90 percent pro rata is a popular type of calculation that includes a penalty, calculated on 90 percent of the unearned premium. The premium is multiplied by the earned factor to obtain the earned premium. The premium, multiplied by the unearned factor, yields the return premium or unearned premium.Insurance customers can use pro rata wheels online to calculate standard pro rata and old short rate earned and unearned premiums as well as variable short rate 90 percent calculations. Many websites offer digital versions of pro rata wheel calculators, replacing traditional manual pro rata wheels. Users have easy access to these online tools that can provide valuable assistance for cancelling insurance policies and assessing the best times to cancel.More reference links: http://ccirater.com/Web/webhelp/mcr2/MCR2Using_the_ProRata_Wheel.htm http://www.commonwealthinsurancepartners.com/wheel.htm
