Return Of Premium

In insurance. A repayment of a part or the whole of the premium paid. Policies of insurance, especially those on marine risks, not unfrequently contain stipulations for a return of the whole or a part of the premium in certain contingencies (2 Phil. Ins. xxii. § 11); but in the absence of any such stipulation, in a case free of fraud on the part of the assured, if the risk does not commence to run, he is entitled to a return of it, if paid, or an exoneration from his liability to pay it, subject to deduction settled by stipulation or usage; and so, pro rata, if only a part of the insured subject is put at risk (2 Phil. Ins. c. xxii. § 1); and so an abatement of the excess of marine interest over the legal rate is made in hypothecation of ship or cargo in like case (Id. § 7; Boul. P.

The repayment of the whole or a ratable part of the premium pnid for a policy of insurance, upon the cancellation of the contract before the time fixed for its expiration.

Defined under Return in Black's Law Dictionary.