Net Premium

Definition

• The total amount earned in premiums after the agent's commission has been taken into account.

Synonyms
net earned premiums

Related Terms and Acronyms

• Account Current (AC) — Acronym, Very Important,
  • A ledger summarizing the performance of each agent employed by an insurance company.
  ➥ A monthly or yearly ledger style report provided by an insurer to an insurance agent detailing policies, premiums, commissions, cancellations, and endorsements.
• Developed to Net Premiums Earned — Definition,
  • A method used to determine if the premiums charged by an insurer are in balance with the benefits they pay out.
• Earned Premium (EP) — Acronym,
  • The amount of premiums that an insurer has collected from an insurance policy at a given time.
• 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.
• Validation Period — Definition,
  • The amount of time needed before an insurance policy turns a profit for an insurance company.