What Does Net Premiums Earned Mean?

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What does Net Premiums Earned mean? Read on to discover the definition & meaning of the term Net Premiums Earned - to help you better understand the language used in insurance policies.

Net Premiums Earned

Net Premiums Earned

Net premiums earned is the total amount of premiums an insurance company considers "earned" depending on the ratio of how much time has passed on the policy to its effective life. This amount counts as earnings and belong to the insurer.

We hope the you have a better understanding of the meaning of Net Premiums Earned.

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