Refunds

Overview

When a policy is cancelled mid-term or a mid-term endorsement reduces the premium, LAMS calculates the refund amount automatically. You review the calculation, create the refund entry, and process it back through the original payment method.

Refund Types

Pro-Rata Refund

Used when the carrier initiates the cancellation.

The refund is calculated based on the exact number of days remaining in the policy term.
The insured receives the full unused premium with no penalty.

Short-Rate Refund

Used when the insured initiates the cancellation.

The refund is the pro-rata amount minus a retention penalty.
The penalty percentage varies by product line.

Processing a Refund

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Refund entry screen showing the policy details, calculated refund amount, refund type toggle, and Submit button

Process the cancellation first — see Cancellation.
Navigate to the policy’s Accounting tab.
The system displays the calculated refund amount based on the cancellation date.
Verify the Refund Type (pro-rata or short-rate).
Click Create Refund Entry.
Select the refund method (this should match the original payment method).
Click Submit.

Tracking Refund Status

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Refunds smart table showing policy number, refund amount, refund method, status, and submitted date

Navigate to Accounting > Refunds to see all pending and processed refunds. The status column shows whether the refund is pending, in process, or cleared.

Adjustments

For situations that do not follow a standard cancellation — such as correcting an overpayment or processing a mid-term premium reduction — use a Recycle Balance Adjustment:

Navigate to the policy’s Accounting tab.
Click Adjustment Entry.
Enter the adjustment amount and reason.
Submit.