The Online Wheel Calculator is used to calculate return premiums for cancelled policies. It may be used for short rate, pro rata and 90% pro rata calculations.
About the free Online Wheel Calculator
Since wheel calculations are the only methods used to calculate return premiums for cancelled insurance policies it is important that this information be easily accessible whenever the information is needed. It is for this reason we created the online wheel calculator. Initially it was developed for our own internal use but a few insurance companies, agencies and other insurance professionals found it and started using it. Since they found it such a valuable tool we decided to share it with others as well.
Donations are greatly appreciated.
Donations are used to help offset some of the costs of keeping this valuable tool available online.
Others providers of wheel calculators charge approximately $150 for 1-10 workstations, a $50 annual renewal and limit access to their wheel calculator! We feel it is important that the wheel calculator is available to you and your staff with unlimited access and no restrictions. Your donation helps us to insure that we can continue to do this. Since we do not limit access you may also share the web address of the online calculator with the insured and other insurance professionals as well.
The free wheel calculator relies on your donations.
The online wheel calculator relies solely on your donations for its continued existence. Please consider making a donation so that we may continue to provide you this valuable resource. Without your support we may be forced to discontinue the Free Wheel Calculator or limit access to paid users.
To make a donation please click the "Make a Donation" link below which will allow you to make a donation using PayPal or a credit card. After your donation is made, select the option to return to merchant. You will then be given new instructions as to how to access the online wheel calculator without restrictions. These new instructions will insure you of uninterrupted access to the online wheel calculator.
Recommend donation amount
If you use the wheel calculator on a regular basis please consider making a donation so that you can be assured of uninterrupted access to this valuable service. Recommended annual donations are $150 for insurance companies or other companies with multiple locations, $50 for single location insurance agency and $20 for a single individual using a single computer. These annual donations are only recommendations and larger donations are encouraged for those that use the online wheel calculator frequently.
After you click the "Make a Donation" link please enter an appropriate amount for your donation. Special instructions will be provided to any individual or company that has make a donation that will allow them to continue to access the wheel calculator without restriction.
Donations of $150 or more will entitle your company to a special wheel calculator with your company's name featured on the page.
As requested we now provide additional method of donating. You may now donate using credit card, PayPal or by sending a check to the address at the top of the page.
05/20/2009 - Wheel Calculator receives over 6,200 hits per month
The wheel calculator has received over 164,470 hits since April 20, 2006. It currently averages over 200 times a day that the calculator is being used. While these numbers are not huge they are encouraging and seem to be climbing as more and more individuals find out about this on-line wheel calculator.
We are please that we have been able to provide you with this valuable tool.
The online line wheel calculator now has it own domain name. This makes it easier to access the online wheel calculator if you are away from your computer or if you do not have a book mark handy.
Help us spread the word.
Many Company, Agencies and Insureds are not aware of this useful online tool. By sharing the link to our page with them they will certainly appreciate it as it makes their job easier. Even if you do not make a donation please take a moment to share the link with others that may find it as useful as you have.
You are encouraged to provide a link to the online wheel calculator on your company's website. This also helps improve the ranking of the online wheel calculator in search engines and make it easier for everyone to find.
Technical Stuff (How does it work?)
The online wheel calculator was created based on all of the known wheels commonly used in the insurance industry to calculate earned and unearned premium. There are three different methods available at the current time to calculate the Earned factor.
Pro rata has no penalty and is simply calculated by dividing the number of days the policy was in effect by the number of days in the policy period.
Short rate adds a penalty to the earned factor. The penalty goes down the longer the policy stays in effect. There is no easy way for you to calculate the short rate earned factor other than to use the online wheel calculator or the traditional manual wheel to look up the factors.
Short rate 90% pro rata is an alternative calculation that also includes a penalty. It is calculated at 90% of the pro rata unearned factor.
Which of the two short rate methods caries the highest penalty will vary based on how long the policy has been in effect. If a policy is cancelled early in the policy period (14 or less days of an annual policy) then short rate (90% of pro rata) will have the highest penalty. The reason for this is with the 90% pro rata method 10.2% of the policy premium is earned on the first day (annual policy). With the short rate method only 5% is earned the first day of the policy period.
Unearned factor is calculated as (1.000-earned factor). In other words the earned factor plus the unearned factor will always total to 1.
Earned premium is calculated by multiplying the Premium by the earned factor.
Return premium or unearned premium is calculated by multiplying the Premium by the unearned factor.
While the online wheel calculator always assumes an annual policy you may change the expiration date to a date of your choice, as long as it is later then the effective date. Please note that the short rata calculation is only available for policies that have a 6 month, 12 month or 36 months term. The reason for this is that the traditional vintage wheels were only available for these three policy periods. We are unaware of other policy terms that use the traditional short rate factor. Short rata (90% of pro rate) and pro rate are available for any policy dates you enter.
If you have any questions about the wheel calculator or suggestions for improvements you may E-mail us at the above address.
While the online wheel calculator has preformed flawlessly with out any know errors of any kind we do not assume any responsibility for any error resulting from the use of the online wheel calculator. We only hope you find it as useful as others have.
To return to the online wheel calculator homepage just click on the link below.