What is the Definition of Earned Premium?

What is the Definition of Earned Premium?

The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Earned Premium?

What is the Definition of Earned Premium?

Check out other definition of insurance terms below:

Meaning of Unclaimed Life Insurance Benefits in Insurance Terms

Life insurance benefits that are unclaimed and unpaid because the beneficiaries aren’t aware that the policies exist or can’t locate the policies because they don’t know which insurance company wrote them. If an insurance company knows that an insured died and cannot find the beneficiary, the money is transferred to the state where the insured bought the policy.

Meaning of Underinsurance in Insurance Terms

The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

Meaning of Underwriting in Insurance Terms

Examining, accepting, or rejecting insurance risks and classifying the ones that are accepted, in order to charge appropriate premiums.

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