- An accounting term in the insurance business, meaning the pro rata portion of a premium, in force during the accounting period, applicable to the expired period of the policy. That part of the premium paid by a borrowing member of a building and loan association which is proportionate to the time which has elapsed upon a premature severance of their relation. 13 Am J2d B & L Assoc § 121. Since a premium is paid in advance to cover a definite period of time, the company is said to have "earned" the premium in direct proportion to the amount of time that has elapsed since the policy was placed upon the books.
Ballentine's law dictionary. Anderson, W.S.. 1998.
Look at other dictionaries:
earned premium — n: the difference between the amount of premium paid by the insured and the amount returned to the insured by the insurer upon cancellation of a policy before its term expires Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
premium — pre·mi·um / prē mē əm/ n 1: the difference between the face value or par value of a security and its market price when the latter is greater compare discount 2: the price paid for an insurance contract equal to the cost per unit times the number… … Law dictionary
earned premium — See premium earned … Ballentine's law dictionary
Earned premium — is the portion of an insurance written premium which is considered earned by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. For instance, if a 365… … Wikipedia
Earned value management — (EVM) is a project management technique for measuring project performance and progress in an objective manner. EVM has the ability to combine measurements of scope, schedule, and cost in a single integrated system. Earned Value Management is… … Wikipedia
premium — premium, prize, award, reward, meed, guerdon, bounty, bonus are comparable when they mean something which is bestowed upon a person as a recompense for cooperation, greater effort, superior merit, or supremacy in competition. Premium is applied… … New Dictionary of Synonyms
Earned Premium — 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 their effective life. This pro rated amount of paid in advance premiums have been earned… … Investment dictionary
premium — A reward for an act done. Brown v. Board of Police Com rs of City of Los Angeles, 58 Cal.App.2d 473, 136 P.2d 617, 619. See also bonus A bounty or bonus; a consideration given to invite a loan or a bargain, as the consideration paid to the… … Black's law dictionary
earned premium — In insurance, that portion of the premium properly allocable to policy period which has expired. An earned premium is difference between premium paid by insured and portion returnable to him by insurance company on cancellation of policy during… … Black's law dictionary
Premium Income — 1. In investing, income that is earned through the sale of an option. The writer of an option earns premium income; the buyer of the option pays the writer a premium in order to have the right (but not the obligation) to exercise the option at a… … Investment dictionary