Unearned Premium Reserve


Also found in: Acronyms.

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.
References in periodicals archive ?
832-4(a)(7), Example 2(ii), the treatment will require taxpayers to include advance premiums in the unearned premium reserve in excess of amounts actually collected by the taxpayer (i.
The reduction was mainly due to the increased claims in fire, medical and marine insurances in Bahrain and Kuwait and also due to the increase in unearned premium reserves in motor insurance.
Insurers that qualify for IRC Section 833 tax treatment can deduct 25 of their claims and 100 percent of their unearned premium reserves from their taxable income.
Tower will also buy from ANV unearned premium reserves related to the business, it said.
The loss reserves and unearned premium reserves prior to the sale of Essentia will stay with OneBeacon to be runoff.
Earnings in 2012 were negatively impacted by an increase in doubtful debt provisions and an adjustment in unearned premium reserves to comply with the draft UAE insurance regulation and the International Financial Reporting Standards (IFRS).