A ratio that relates expenses to net premium earned.
Insurance Encyclopedia
Premiums earned
The portion of the written premium allocable (usually pro rata) to the time already elapsed under the policy period.
Premiums reducing policy
Marine insurance policy effected by shipowners on the insurance premiums paid on their ships. In the event of loss of a vessel, the owner will lose the unearned premium. The premiums reducing policy runs concurrently with other relevant policies.
Premiums trust fund
Trust fund into which all premiums received by a Lloyd’s member must be placed. The fund is available for the payment of claims, reinsurance premiums, syndicate expenses and, when an account has been closed, for the payment of any profit due to the member. Each member has a sterling fund, a US dollar fund and a Canadian dollar fund. The funds are the first link in Lloyd’s chain of security.
Premiums trust fund (PTF)
The premiums and other monies that members receive in respect of their underwriting at Lloyd’s are held by their managing agents in trust for them subject to the discharge of their underwriting liabilities. The premiums trust funds comprise a sterling fund, Lloyd’s American Trust Fund, Lloyd’s Dollar Trust Funds, Lloyd’s Canadian Trust Fund and the Lloyd’s Asia Trust Fund. These premiums trust funds are available to fund overseas regulatory deposits, claims, return premiums, underwriting expenses and (once a year of account has been closed) any profit that is payable to the member.
Prenotice
Under the Fair Credit Reporting Act, advanced written statement to an insurance applicant from an insurance company that an investigative consumer report must be obtained on the applicant.
Preop
Abbreviation for preparation for operation or preoperative. See preoperative (preop).
Preoperative (preop)
Pertaining to the period before a surgical procedure. Commonly the preoperative period begins with the first preparation of the patient for surgery and ends with the induction of anesthesia in the operating suite.
Prepaid Expenses
An expenditure, often recurrent, for benefits as yet not received. Unexpired Insurance is a prepaid expense from the Policy holder’s point of view.
Prepaid for Freight
Payment of the full bill of lading freight in advance.