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 ?
Single premium or limited payment plans are often used, or additional funds can be placed in a prepaid premium account (also referred to as a "premium deposit fund").
They provide that an individual taxpayer may allocate the prepaid premium ratably over the shorter of (1) the stated term of the mortgage or (2) 84 months, beginning with the month in which the insurance was obtained (Temp.
In evaluating the insurer's position in the one-year/three-year tradeoff, we have considered three potential economic benefits to the insurer from entering into multiple-year contracts: interest on prepaid premium, reduced administrative costs and single aggregate limit.
The treaties have provisions which, for a prepaid premium, will provide an automatic reinstatement of another $212.
Health Maintenance Organization (HMO): A health plan that combines coverages of health-care costs and delivery of health care for a prepaid premium.
The court also focused on the fact that the IPA model HMO offers services different from traditional fee-for-service services and creates a new product that the court described as "guaranteed comprehensive physician services for a prepaid premium.
BOSTON -- Utix Group, the largest marketer of prepaid premium gift tickets, announced that On January 3, 2005, Mr.
As the company did not liquidate, the policy was revised and, after a credit from the insurer, the remaining prepaid premium was expensed.
Combining EFI's Unimobile messaging platform and Telcordia technology makes it easier for carriers like Virgin Mobile USA to deliver prepaid premium wireless services to their consumers.
The Company has obtained temporary incremental borrowing capacity from its lender and has received a reduction in collateral requirements and a rebate of a portion of prepaid premium related to its insurance arrangements.
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.
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.