Unearned Premium


  • 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.

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.
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