Advance Premium

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Advance Premium

The premium on an insurance policy that is paid well in advance. For example, if one pays May's premium in April, the payment is an advance premium. Often, though not always, the advance premium results in a discount on the amount owed.
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The DOL confirmed that the trust rules technically apply to a demutualization, but suggested that the rules can be avoided by having the insurance company keep the shares as advance premiums or use them to pay for plan enhancements.
If, like John, you pay the loan off early, you won't normally get a refund of the advance premiums paid for the cover you no longer need.
Clarification of the treatment of advance premiums.
The proposed regulations further require that advance premiums be included in gross premiums written md unearned premiums in the earliest tax year in which any portion of the premiums is received or when the policy begins, thereby subjecting such amounts to the 20% reduction.
AmCOMP Incorporated and Subsidiaries Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2006 2005 Assets Cash and investments 401,518 332,196 Premiums receivable-net 115,612 104,522 Reinsurance recoverables 77,025 83,880 Deferred policy acquisition costs 22,989 19,413 Deferred income taxes 24,149 20,871 Other assets 20,550 22,445 Total assets 661,843 583,327 Liabilities and stockholder's equity Unpaid losses and loss adjustment expenses 317,553 309,857 Unearned and advance premiums 128,269 115,574 Long term debt 39,143 40,036 Other liabilities 48,935 45,879 Total liabilities 533,900 511,346 Preferred stock 0 23,098 Total stockholders' equity 127,943 71,981 Total liabilities and stockholder's equity 661,843 583,327
AmCOMP Incorporated and Subsidiaries Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2006 2005 Assets Cash and investments $396,194 $332,196 Premiums receivable--net 121,693 104,522 Reinsurance recoverables 89,497 83,880 Deferred policy acquisition costs 23,773 19,413 Deferred income taxes 22,695 20,871 Other assets 19,794 22,445 Total assets $673,646 $583,327 Liabilities and stockholder's equity Unpaid losses and loss adjustment expenses $319,777 $309,857 Unearned and advance premiums 135,396 115,574 Long term debt 39,589 40,036 Other liabilities 54,954 45,879 Total liabilities 549,716 511,346 Preferred stock 23,098 Total stockholders' equity 123,930 71,981 Total liabilities and stockholder's equity $673,646 $583,327
AmCOMP Incorporated and Subsidiaries Consolidated Balance Sheets (in thousands) (unaudited) December 31st 2005 2004 Assets Cash and investments $332,196 $262,028 Premiums receivable--net 104,522 101,638 Reinsurance recoverables 83,880 115,870 Deferred policy acquisition costs 19,413 14,695 Deferred income taxes 20,871 17,646 Other assets 22,445 31,905 Total assets $583,327 $543,782 Liabilities and stockholder's equity Unpaid losses and loss adjustment expenses $309,857 $297,698 Unearned and advance premiums 115,574 114,235 Long term debt 40,036 41,821 Other liabilities 45,879 31,693 Total liabilities 511,346 485,447 Preferred stock 23,098 23,098 Total stockholders' equity 71,981 58,335 Total liabilities and stockholder's equity $583,327 $543,782
Liabilities and Shareholders' Equity Liabilities Unpaid losses and loss adjustment expenses $45,757,421 $47,730,974 Unearned premiums 7,627,316 2,471,195 Reinsurance premiums payable 6,308,748 3,703,417 Advance premiums 598,618 3,289,647 Short-term borrowings 4,353,514 4,553,411 Other liabilities 2,287,058 1,884,589 Total liabilities 66,932,675 63,633,233
Net Premiums receivable and advance premiums 4,786 8,801 Property and equipment, net 5,918 5,383 Deferred acquisition costs 3,573 3,951 Other assets 2,387 1,854
The jargon-buster contains a simple glossary on more than 50 terms, like annual percentage rate (APR), decreasing term assurance, equity, maximum advance premiums, and the standard variable mortgage rate (SVR).
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Medical and other benefits payable $113,133 $126,882 Advance premiums 18,157 19,986 Payables and accrued expenses 23,439 28,930 Notes payable 55,064 124,578 Other liabilities 22,478 21,383 Total Liabilities 232,271 321,759 Redeemable preferred stock -- Series A adjustable rate nonconvertible, $1,000 stated value, 25,000 shares authorized -- -- Shareholders' Equity: Preferred stock (no par value, 475,000 shares authorized) -- -- Common stock (no par value, $1 stated value,
explained, in part, by a change in accounting for advance premiums in