What does Earned Premium mean? Read on to discover the definition & meaning of the term Earned Premium - to help you better understand the language used in insurance policies.
That portion of a policy's premium that applies to the expired portion of the policy. Although insurance premiums are often paid in advance, insurers typically "earn" the premium at an even rate throughout the policy term. The unearned portion of the premium that has been paid is kept in the "unearned premium reserve."
We hope the you have a better understanding of the meaning of Earned Premium.