According to Article 54 of the Insurance Law of People's Republic of China (PRC), before the insurance liability begins, if the applicant requests to terminate the contract, he shall pay the handling fee to the insurer as agreed in the contract, and the insurer shall refund the insurance premium.
After the commencement of insurance liability, if the applicant requests to terminate the contract, the insurer shall, in accordance with the contract, deduct the receivable part of the insurance premium collected from the commencement of insurance liability to the termination of the contract and return it to the applicant. If the insured and the insurer have an agreement on the insured value of the subject matter insured and specify it in the contract, when the subject matter insured suffers losses, the agreed insured value shall be taken as the compensation calculation standard.
Extended data:
The relevant requirements of insurance stipulate that:
1. If the contract is terminated, the insurer shall refund the insurance premium of the undamaged part of the subject matter insured from the date when the insurance liability starts to the date when the contract is terminated, after deducting the receivable part.
2. If the validity of the contract is terminated in accordance with the provisions of Article 36 of this Law, the validity of the contract will be restored after the insurer and the applicant reach an agreement through consultation and the applicant pays the insurance premium. However, if both parties fail to reach an agreement within two years from the date of termination of the contract, the insurer has the right to terminate the contract.
Central People's Government-People's Republic of China (PRC) Insurance Law