Unearned Premium

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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 ?
As security for the insured's payment obligation, the insured grants the premium finance company a security interest in the financed policy, including unearned premiums that would be payable to the insured in the event of any reduction or cancellation of the applicable insurance coverages.
The drop in NEP was alleviated by the release of AED 72mn in provisions for unearned premiums.
In addition, guaranty associations may also repay policyholders for unearned premiums - premiums paid for coverage beyond the point of insolvency.
Net premium income, after reinsurance and provisions for unearned premiums, continued to grow at about 20 per cent in the first and second quarters.
First Insurance claimed when insurance policies were canceled, the Hagan Agency should have forwarded the unearned premiums to it.
60, Accounting and Reporting by Insurance Enterprises, by requiring that reinsurance receivables and unearned premiums paid to the reinsurer be reported as assets.
Present value of installment premiums due pursuant to the terms of a financial guaranty insurance contract will be recognized at inception of the contract as unearned premiums and premiums receivable.
The December property/casualty edition covered the opinion reversal of the attorney general of New York in relation to unearned premiums.
816(a), as well as for computing a nonlife company's unearned premiums under Sec.
7 million in unearned premiums transferred, which was partially offset by $11.
MIC and ARI were wholly responsible for determining the liabilities (the Collateral Base), which consist of case loss reserve, incurred but not reported losses (IBNR) and unearned premiums.