Earned Premium


  • The total amount of premiums that an insurance company has collected at a specific time in an insurance policy. For example if one year has passed in a three year, $3,000 insurance policy, and the insured person had yet to file a claim, the earned premium would amount to $1,000.

premiums earned


Related Terms and Acronyms

  • Medical Loss Ratio Definition,
    • A method of comparing the medical costs paid to the premiums earned by an insurance company in a specific period of time.
  • Net Premium Definition,
    • The total earned by an insurer in insurance premiums, less the agent's commissions.
  • Policyholder Dividend Ratio Definition,
    • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • Policyholder Surplus Definition,
    • A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
  • Premium Definition,
    • A payment made to an insurance company for insurance coverage.
  • Premium Balances Definition,
    • A ledger kept by insurance companies recording insurance premiums.
  • Premiums Written Definition,
    • A sum of the premiums from all the policies that a company has written in a given period of time.
  • Underwriting Income Definition,
    • The income earned by an insurer from underwriting in a certain amount of time.
  • Unearned Premium Definition,
    • Premiums that have not yet been collected from an insurance policy.
  • Validation Period Definition,
    • The amount of time needed before an insurance policy turns a profit for an insurance company.
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