Unearned Reinsurance Premium

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A premium paid on a reinsurance 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 reinsurer should refund the premiums March, April, May and June. For that reason, they are listed as liabilities on the reinsurer's balance sheet.

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