Premium refund request

How do we pay a premium refund after a cancellation or an overpayment with the amount confirmed by the state's return premium rules and the payee verified before the money moves?

Compute the refund by rule and verify the payee before paying. Callvu opens the refund from the cancellation or the overpayment event, prefills the billing account (the premium paid, the earned premium to the cancellation date, the method the rules require, any premium finance company or lienholder interest, the original payment method), computes the return premium pro rata or short rate as the state and the policy provide, verifies the payee (the named insured, or the premium finance company where one paid) and the destination (a refund to the original card, a verified bank account, or a check to the address of record), routes an exception to the billing analyst in the Decision Desk, and pays the refund within the state's deadline with the record written to the billing system.

In scopeSimpleCallvu moves: prefill, decide, write back

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Last updated November 7, 2026.

The problem today

The refund went to the policyholder, but the premium had been financed, and the finance company's demand arrived a month later.

Today, without Callvu

A policy is cancelled mid-term. Billing computes the unearned premium and sends a check to the policyholder's address of record. The premium had been paid by a premium finance company under an assignment the file showed; the finance company is owed the refund first. A second refund to the finance company follows, and the recovery from the policyholder does not.

The state's return premium rules set the method (pro rata on the insured's own cancellation in most lines, short rate where the policy and the state allow it, and always pro rata when the insurer cancels), the deadline to pay (and interest when it is late), and the party entitled to it (the insured, or a premium finance company with an assignment, or a lienholder for a credit insurance refund). The refund is a payment, and payment controls apply: a verified payee, a verified destination, and a sanctions screen where the amount or the payee warrants it.

A refund is money leaving the company, and it deserves the same care as money coming in.

How it runs

From the requestto the system of record.

A cancellation posts, an overpayment is identified, or a policyholder requests a refund. Callvu opens the refund on the billing account.

Policyholder: Confirms the destination on a secure screen and receives the refund and the statement.
Billing: The billing analyst decides exceptions in the Decision Desk; the billing system holds the refund.
Callvu: Prefills, computes, verifies the payee and destination, routes and pays.

Prefill and compute
The premium paid, the earned premium to the cancellation date, the policy's return premium method, the state's rule for the cancellation type (the insured's request, the insurer's cancellation, a non-payment cancellation), any fully earned fees, a premium finance company's assignment, a lienholder's interest in a credit insurance premium and the original payment method are read from the billing system; the return premium is computed pro rata or short rate as the rules provide.
Verify the payee and the destination
The party entitled to the refund is determined (the named insured, the premium finance company, the lienholder); the destination is verified: a refund to the original card through the gateway where the rules require it, a bank account the policyholder confirms on a secure screen with validation, or a check to the address of record; a sanctions screen runs on the payee where the policy requires.
Decide
A refund within the rules to a verified payee is approved by rule; an exception (a short-rate computation the state does not allow for the cancellation type, a refund above a threshold, a payee other than the named insured, a destination that fails verification, a premium finance assignment) goes to the billing analyst in the Decision Desk with the computation and only the allowed outcomes.
Pay and write back
The refund is paid through the chosen rail within the state's deadline, the refund with its computation, payee, destination and date is written to the billing system, and the policyholder (and the finance company where it was paid) receives the statement showing how the amount was computed.

Where it ends: The refund was computed by the state's rules for the cancellation type, paid to the party entitled to it at a verified destination within the deadline, and recorded in the billing system with the statement sent. The Decision Trace shows the computation, the payee determination and any decision; the Audit Trace shows the verification, the payment and the write.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

State return premium rules (for example New York Insurance Law 3428, Texas Insurance Code 558, California Insurance Code 481 and the premium finance statutes such as New York Banking Law Article 12-B): The unearned premium must be returned on cancellation, pro rata when the insurer cancels and in most personal lines on the insured's request, or short rate only where the policy provides and the state permits it; the refund is due within the state's period (commonly fifteen to thirty days, with interest for delay in several states), and where a premium finance company has an assignment, the return premium is paid to it up to the balance owed.
State unfair claims and trade practices provisions on refunds: Failing to pay a return premium promptly or computing it on an unfiled basis is an unfair trade practice in most states, and the insured must receive an explanation of the computation.
Payment controls (OFAC sanctions screening and the insurer's disbursement policy): A refund is a disbursement; the payee is screened where the amount or the party warrants it, the destination is verified, and dual control applies above the policy's threshold.

Company policies

The return premium method is set by the state's rule for the cancellation type and the policy's terms, never chosen by the analyst.
The payee is the party entitled under the assignment or the policy, determined by rule.
The destination is verified before any refund leaves the company.
The billing system is the system of record for the refund.

Controls

Prefill from billing including assignments and interests.
Return premium computation by rule.
Payee determination.
Destination verification and sanctions screen.
Decision Desk for exceptions with thresholds.
Payment within the deadline and billing write with the statement.

Clocks and deadlines

Refund deadline: The state's period after cancellation (commonly fifteen to thirty days), with interest where the state charges it for delay.
Destination confirmation: The policyholder's confirmation chased on a schedule; a check to the address of record after the period if no confirmation.

Documents and checks

The prefilled account and the computation
The payee determination and the assignment where one exists
The destination verification
The decision where one was needed
The payment record and the statement

In the Decision Trace

The method and the computation.
The payee determination.
Any decision and the person.

In the Audit Trace

The event that opened the refund.
The verification with time.
The payment and the write.

The handoff

Between the front doorand the back office.

The front door

The policyholder confirms the destination on a secure screen from a link, the app or a call.

The back office

The billing analyst sees only exceptions; the billing system pays and records from the decision.

The Decision Desk

A computation the state's rule questions, a refund above the threshold, a payee other than the named insured, a failed destination verification or a premium finance assignment goes to the billing analyst in the Decision Desk with the computation and only the allowed outcomes.

Proof

In scope.Proof at scale, not one process at a time.

The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.

Phoenix put more than 100 processes live in under 3 months.

Across Callvu customers

More than 1,000 processes are live across Callvu customers.

Across Callvu customers

Questions

What buyers ask next,answered plainly.

How is the refund computed?

Pro rata or short rate as the state's rule for the cancellation type and the policy's terms provide, from the billing system's data, with the computation shown on the statement.

Who receives it?

The party entitled by rule: the named insured, or a premium finance company with an assignment up to its balance, or a lienholder for a credit insurance refund.

How is it paid?

To the original card where the rules require, to a verified bank account the policyholder confirms, or by check to the address of record, within the state's deadline.

Related processes

Policy cancellation request Premium payment by phone or link Automatic payment enrollment and changes Agency bill statement reconciliation Try it in the sandbox All insurance processes

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