Fund that holds a part of the insurance premium that has been paid in advance for which the protection of the policy has not yet been provided. Also called unearned premium .
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A reserve equal to an amount of net premium written but not yet earned.
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The amount of all premiums which have not been earned as of a particular point in time, which is shown on the insurer’s balance sheet.
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The fund set aside by an Insurance Company to provide for the payment of unearned premiums on cancelled policies.
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REINSURANCE: The reserve amount included in the company’s financial statements for unearned premiums with respect to the insurance policies or reinsurance agreements as of a particular point in time. Unearned premiums are the sum of all the premiums representing the unexpired portions of the policies or reinsurance agreements which the insurer or reinsurer has on its books as of a certain date.