The cancellation by the insuredThe entity (individual or otherwise) whose risk of financial loss from an insured peril is protected by the insurance policy. of a policyLegally binding contract effecting insurance or certificates thereof, including all clauses, riders, endorsements and renewals. before its natural expiration; the insurerThe company providing the insurance coverage. pays a return premiumA refund to the policyholder of part of the premium he has paid because of cancellation, rate reduction, reduction in amount of insurance, or some sim... which is less than the proportionate part that remains unearned.