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Unearned Premium Reserve

   Also found in: Acronyms 0.02 sec.
Unearned Premium Reserve
An account into which an insurer deposits unearned premiums, which are paid on insurance policies before they are due. For example, one may pay six months' worth of premiums in January instead of paying each month from January to June. Unearned premiums are listed as liabilities on an insurer's balance sheet and regulators thus require insurance companies to maintain reserves to refund these amounts if necessary.


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A quota-share cession, with a ceding commission that captures a portion of the yearend unearned premium reserve, would give the ceding company some statutory expense and surplus "relief.
Previously, it was the IRS's position that such amounts should be included as part of the unearned premium reserve subject to the 20% reduction.
GAAP unearned premium reserves (on policies classified as financial guarantee); b.
 
 
 
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