Debt, Credit & Consumer Protection · Surprise rank #90
Canceled a NY Insurance Policy Mid-Term? You May Be Owed the Unearned Premium Back
New York Insurance Law §3428 governs return of unearned premium when certain insurance policies are canceled or terminated before the end of the policy period.
Who
Policyholders whose covered New York insurance contract ends before expiration and has unearned premium remaining.
What to do
Start here: Review the cancellation statement and premium calculation; ask the insurer or agent in writing how the unearned premium was calculated and when it will be returned.
Eligibility: A covered policy must be canceled/terminated before expiration and have premium that is unearned under the applicable law, rate filing and contract.
What you get
The insurer returns the portion of premium that is unearned after applying the contract and approved rate rules.
Benefit: Return or credit of the unearned portion of the premium.
Possible value: Depends on the premium, cancellation date, contract and applicable earned-premium calculation.
Good to know
Important: The refund is not always a simple day-by-day pro-rata calculation. Premium-financed policies and policies with approved minimum-earned-premium provisions can follow special rules.
Availability: Active legal protection
Why people miss it: After canceling insurance, consumers may focus on stopping future billing and overlook money already prepaid for unused coverage.
Sources reviewed: Aug 10, 2026