Earned Premium
/ˈɜrnd ˈprɛm.i.əm/
Definitions
- (n.) The portion of an insurance premium that corresponds to the expired portion of the policy period and is considered earned by the insurer.
The insurer recognized the earned premium as revenue over the policy term.
Forms
- earned premium
- earned premiums
Related terms
See also
Commentary
Earned premium is critical in insurance accounting to distinguish revenue recognition from cash received; precise calculation affects loss ratio and financial reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.