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 employer will advance premiums for a fixed number of years.
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.