In BillingCenter, what does a pro rata change refer to?

A pro rata change in BillingCenter refers to the specific treatment of invoices, which allows for changes in billing amounts based on the portion of the policy period that has elapsed. This concept is particularly relevant when a policyholder makes adjustments during the policy term, such as changes to coverage or mid-term cancellations.

In instances where a policy is canceled or modified, a pro rata calculation ensures that the premiums are proportionate to the time the policy was active. This method takes into account the exact number of days the policy was in force, allowing BillingCenter to generate accurate and fair invoice adjustments based on the time coverage was provided.

This treatment is essential for ensuring both the insurer and the insured maintain equitable financial practices, particularly in scenarios involving partial periods or changes in coverage. Understanding this principle is critical for ensuring that invoice and premium adjustments are handled correctly within the system.