You can cancel financed insurance on an existing account with the INSURANCE CANCELLATION transaction. When you post this transaction, the system computes premium refund amount based on the refund method associated with insurance item.

If you enter a value for INSURANCE REFUND AMOUNT parameter, the system overrides calculated refund amount and adjusts advance/principal balance and Loan receivables accordingly. The INSURANCE CANCELLATION transaction re-computes the repayment amount for Loan based on remaining balances. After posting the transaction, Loan will be billed for newly computed payment amount according information on the Contract tab’s Contract sub tab. The insurance cancellation information can be viewed on the Contract link’s Insurances sub screen.

Also if you enter a value for Current Usage, system computes the rebate amount using the Pro Rata (Mileage) method. However system also calculates the rebate amount using Refund Calculation Method and considers the minimum value out of both.