Portion of a property or liability Insurance premium equal to the unexpired portion of the period for which the total premium has been paid. The unearned premium equals the gross premium minus the earned premium. Thus, for an annual Policy, at the end of the first month of coverage, eleventh-twelfths of the premium is unearned.*****That part of the original premium not yet earned by the Insurance Company and therefore due to the Policy-holder if the Policy should be cancelled.*****
That portion of an insurance premium that would have to be returned to the insured if the policy were canceled.
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That portion of the original premium that applies to the unexpired portion of risk A fire or casualty insurer or reinsurer must carry a reserve against all unearned premiums as a liability in its financial statement, for if the policy should be cancelled, the company would have to pay back the unearned part of the original premium.
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The proportion of premium that relates to the unused period of cover.
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The fraction of the premium which has remained unused during the time frame in which the premium was paid.
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That portion of the policy premium that has not yet been “earned” by the company because the policy still has some time to run before expiration. A property or casualty insurer must carry all unearned premiums as a liability in its financial statement since, if the policy should be canceled, the insurer would have to pay back a certain part of the original premium.