Unearned Premium

(redirected from Prepaid Premium)

Unearned Premium

A premium paid on an insurance policy before it is due. For example, one may pay six months' worth of premiums in January instead of paying each month from January to June. If the policyholder cancels before February, the insurer should refund the premiums for March, April, May and June. For that reason, they are listed as liabilities on the insurer's balance sheet.
References in periodicals archive ?
They provide that an individual taxpayer may allocate the prepaid premium ratably over the shorter of (1) the stated term of the mortgage or (2) 84 months, beginning with the month in which the insurance was obtained (Temp.
In evaluating the insurer's position in the one-year/three-year tradeoff, we have considered three potential economic benefits to the insurer from entering into multiple-year contracts: interest on prepaid premium, reduced administrative costs and single aggregate limit.
The treaties have provisions which, for a prepaid premium, will provide an automatic reinstatement of another $212.
12 /PRNewswire/ -- Utix Group, the largest marketer of prepaid premium gift tickets, has entered into a reciprocal agreement with Quantum Loyalty Systems Inc.
The court also focused on the fact that the IPA model HMO offers services different from traditional fee-for-service services and creates a new product that the court described as "guaranteed comprehensive physician services for a prepaid premium.
BOSTON -- Utix Group, the largest marketer of prepaid premium gift tickets, announced that On January 3, 2005, Mr.
The addition of an alternative test and the increase in the prepaid premium rate represents our commitment to continuing to find ways to improve the flexibility and competitiveness of our universal life product line," said Len Scholl, assistant vice president, Universal Life products, Sun Life Financial.
As the company did not liquidate, the policy was revised and, after a credit from the insurer, the remaining prepaid premium was expensed.
Liberal Conversion Credit, and Prepaid Premium Discount
Combining EFI's Unimobile messaging platform and Telcordia technology makes it easier for carriers like Virgin Mobile USA to deliver prepaid premium wireless services to their consumers.
The Company has obtained temporary incremental borrowing capacity from its lender and has received a reduction in collateral requirements and a rebate of a portion of prepaid premium related to its insurance arrangements.
Operating cash flow in 1996 includes an $86 million after tax prepaid premium for certain coal seam gas production through the year 2002.