What is 15 16 rule?

Answer 1

Check with your insurance company for your exact terms, but generally . . . The 15/16 Rule is a method of calculating your premium if your effective date falls somewhere in the middle of the month. It is also used to calculate a premium refund if your policy is cancelled. If your effective date falls on or before the 15th of the month, your premium will include the entire month (i.e., you will be billed for a full month). If your effective date falls on or after the 16th of the month, your premium will not include the month (i.e., you will receive a few free days -- be thankful!) Likewise, if you cancel your insurance on or before the 15th of the month, your premium refund will include the entire month (i.e., you will be reimbursed for a full month, even though you only used a few days -- hooray!). If you cancel your insurance on or after the 16th of the month, your premium refund will not include the days you didn't use (i.e., you will pay for a few days, even though you weren't covered for them).