UK: As premiums are payable in advance it follows that at any one time, e.g. end of the financial year, most policies will have an unexpired term to complete. The premium earned is the pro rata share of the premium relating to the period that has expired.
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Portion of the premium for a single Policy or group of policies, that an Insurer is entitled to recognize as earned revenue because a similar portion of the coverage period has elapsed. For example, under an annual Policy, one-third of the total premium is earned after the first four months of coverage.
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That part of a premium that relates to so much of the period of insurance as has already run.

Premiums paid during a person’s lifetime on his own life may be regarded as normal expenditure out of income and therefore exempt from inheritance tax. Such premiums are not ‘normal expenditure’ if an annuity was purchased on his life unless they were not associated operations, i.e back to back. Policies and annuities are not regarded as associated operations if, first, the policy was issued on full medical evidence of the insured’s health, and, secondly, it would have been issued on the same terms if the annuity had not been bought.

Otherwise called the overall premium limit it is the limit that, in respect of a Lloyd’s member, represents the maximum underwriting capacity that can be allocated to one year of account. See OVERWRITING OF PREMIUMS.

an amount payable by a reinsurer to a cedant in consideration of the release of the reinsurer from all or part of the liability arising under a reinsurance contract for claims occurring after a specified date under all or certain underlying contracts incepting prior to that date.
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The unearned premium debited to an outgoing reinsurer (loss portfolio withdrawal) and credited to the incoming reinsurer as in loss portfolio entry.

Valuation of a long-term insurance policy for the pension scheme’s accounts. It is based on how much the scheme has to pay for each member. The actuary or accountant may opt for a modified premium value, i.e. one that excludes the company’s setting up charges.

A ratio that relates expenses to net premium earned.

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.

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.

UK: Current value of future payments. It is calculated by deducting an amount for interest, and taking account of how likely it is that the money will be paid. Also called capitalised value.
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MEDICAL,USA: For future stream of payments, a lump sum amount that, if invested on a certain date (evaluation date), together with interest earnings, would be enough to meet each of the payments as they fell due. At the time of the last payment, the invested fund would be exactly zero.
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The current value of an amount due in the future.
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The current value of future money before interest earnings are included.