- 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.
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.