Unearned Premium Reserve
/ˌʌnˈɜːrnɪd ˈprɛmɪəm rɪˈzɜːrv/
Definitions
- (n.) A liability account on an insurer's balance sheet representing premiums received but not yet earned because the coverage period extends beyond the reporting date.
The insurance company reported a high unearned premium reserve to reflect coverage not yet provided.
Forms
- unearned premium reserve
- unearned premium reserves
Related terms
See also
Commentary
The unearned premium reserve ensures insurers do not recognize income prematurely; proper calculation is crucial for accurate financial reporting in insurance law.
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.