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earned premium

The amount of a premium which is considered by the insurance company to have already been earned by them. It is calculated by taking the original premium value, and determining how long the policy has been in effect without having a claim filed, and then applying that percentage of time to the amount of the loan. This value is the amount that the insurance company counts as earned. For example, if there was a $1000 premium paid by the insured, for a policy to last five years, and one year (20% of the total time) had past without the insured filling a claim, the insurance company calculates their earned premium as 20% of $1000, or $200.

Related information about earned premium:
  1. Earned Premium Definition | Investopedia
    The amount of total premiums collected by an insurance company over a period that have been earned based on the ratio of the time passed on the policies to ...
     
  2. Cancellation (insurance) - Wikipedia, the free encyclopedia
    Earned premium is the portion of an insurance written premium which is ... Earned premium will not be returned to the insured if the policy is cancelled.
     
  3. How to calculate Earned Premium example | RiskHeads
    Aug 25, 2010 ... Within the accounting systems used by insurers the Earned premium can be counted as part of the profit for a given accounting period while the ...
     
  4. What Is an Earned Premium?
    Aug 23, 2012 ... An earned premium is a profit for an insurance company based on the amount of time that's elapsed on a contract for an insurance...
     
  5. What is earned premium? definition and meaning
    Definition of earned premium: The amount of a premium which is considered by the insurance company to have already been earned by them. It is calculated by ...
     
  6. earned premium - Insurance Glossary
    earned premium - That portion of a policy's premium that applies to the expired portion of the policy.
     
  7. Earned Premium - Financial Dictionary - The Free Dictionary
    In insurance accounting, the prepaid premium that an insurance company may count as profit because of the length of its exposure to risk. For example, suppose ...
     
  8. Earned premium - The Free Dictionary
    Something offered free or at a reduced price as an inducement to buy something else. 3. A sum of money or bonus paid in addition to a regular price, salary, ...