Unearned Premium

(redirected from Prepaid premiums)

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 ?
The temporary regulations provide guidance to reporting entities receiving premiums, including prepaid premiums, for mortgage insurance and reflect changes to the law made by the Tax Relief and Health Care Act of 2006, EL.
The regulations also offer guidance to reporting entities receiving premiums, including prepaid premiums, for mortgage insurance.
North Carolina Attorney General Roy Cooper charged that The Associates added expensive prepaid premiums to the loans without homeowners' knowledge or understanding, and then financed those premiums at high interest rates over the life of the loan.
31, March 31, 1995 1994 1994 Assets Investments (at market) $1,042,955 $ 960,507 $ 884,244 Cash and equivalents 4,395 11,412 3,963 Reinsurance recoverable and prepaid premiums 59,984 60,679 50,764 Deferred policy acquisition costs 24,090 25,602 27,222 Property and equipment -- net 16,042 17,108 14,684 Other assets 32,924 41,413 36,452 Total assets $1,180,390 $1,116,721 $1,017,329
HMOs, which arrange for the delivery of health care services in exchange for prepaid premiums, have undergone dramatic change in New Jersey in the last few years.
In 1985, the trustees canceled the Fund's GILICO policies and requested a refund of the policies' cash values and the unearned and prepaid premiums.