Earned Premium

The portion of an insurance premium, paid in advance, that represents the expired part of the policy period.

Earned Premium
Earned Premium

The insurance company has “earned” this portion of the premium, as it provided protection during a particular coverage period, yet no insurance claims were filed against that amount. This is why it is known as an earned premium.

Also commonly called, “premium earned.”

 

 

« insurance glossary

Leave a Comment

Exit mobile version