Unearned Premium
Definition
- The portion of premiums that an insurance company has not yet 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 unearned premium would amount to $2,000.
Synonyms
unearned insurance premium, unearned premium revenue
Related Terms and Acronyms
- 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.
- 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.
