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hi everyone my name is mike and thank you for joining me on another segment of one risk minute in this segment im going to explain how to calculate your workers compensation short rate cancellation penalty in california if you take a look at my screen theres a few things youll need first make sure you have a calculator make sure you have the endorsement from the policy california short rate cancellation endorsement in the policy itself you need to know the number of days you had your policy in force and the amount of premium you paid during those days lets say you had your policy for 100 days and you paid 12 000 in premium you need to first find out what your annualized premium will be so in a policy year of 365 days which is a normal annual policy divide that by the number of days you had it 3.65 and multiply that by the amount of premium you paid your annualized premium would have been 43 800 go down below for 100 days the percent of full policy premium is at 38 so go ahead and m