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.

The sum of all unearned premium for in force policies of insurance under the reinsurance agreement, often with respect to a particular block, book or class of business during a particular period.
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UK: an amount payable by a cedant to a reinsurer in consideration of the reinsurer accepting liability for all or part of the liability arising under a contract of reinsurance for claims occurring after a specified date under all or certain underlying contract incepting prior to that date.

A term describing an accounting transaction in which an unearned premium portfolio is carried forward from one accounting period to the following accounting period under an existing contract or a renewal.

That part of the reinsurance premium applicable to the unexpired portion of the policies reinsured.

Reinsurance effected with a reinsurer not licensed to do business in the Country or area of jurisdiction concerned.

Contracts of insurance and reinsurance are contracts of utmost good faith. In the event that either party fails to observe utmost good faith towards the other in regard to the negotiation of cover then the other party may avoid the contract. The duty of utmost good faith requires each party to inform the other all material facts during the negotiation of the placement, renewal or alteration of cover. An insured has a separate duty of good faith when making a claim under an insurance policy.
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A basic principle of insurance. Mutual trust in negotiating an insurance contract. The insured and the broker must disclose and truly represent every material circumstance to the underwriter before acceptance of the risk. A breach of good faith entitles the underwriter to avoid the contract.
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Firm adherence to promises made to another, including disclosure of all relevant facts, and complete trust in the fidelity of the other. Black’s Law Dictionary states: “The most abundant good faith, absolute and perfect candor, openness and honesty; the absence of any concealment or deception, however, slight.”
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An obligation of the insured to disclose material facts, i.e. facts that would influence the insurer before accepting the contract. The insurer must reciprocate but in practice the duty weighs more heavily on the insured. A breach by the insured makes the contract voidable ab inito at the insurer’s option. Breaches may be through concealment; non-disclosure; fraudulent misrepresentation; innocent misrepresentation. The duty is pre-contractual but revives at renewal and to certain midterm alterations affecting the risk. See CONTINUING DUTY OF UTMOST GOOD FAITH.
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Legally, the parties to an insurance contract are assumed to have entered the contract in the “utmost good faith,” which means they have not misrepresented any facts and intend to abide by the terms of the contract.
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A legal doctrine in which the highest standard of honesty is imposed upon the parties to an insurance contract.

A marine reinsurance term making it clear that the reinsurance policy is a valued policy and that the value is the same as in the original policy though not all the cover is necessarily reinsured.

A form of marine reinsurance under which the reinsurer undertakes to pay a fixed amount if a ship in excess of a specified value becomes a total loss.