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Terms Beginning with U
                       
                       
 U.S. Government And Federal Agency Obligations   Unemployment Rate     
 U.S. Government Securities   Unilateral Administrative Order     
 U.S. Government Sponsored Enterprise Obligations    Unit Labor Costs     
 Umbrella Coverage   United States Public Company Accounting Oversight Board     
 Unassigned Surplus   Unpaid Claims and Claims Adjustment Expenses     
 Unconfirmed complete remission CRu   Upstream     
 Underlying   Urology     
 Undeveloped reserves   US GAAP     
 Undistributed profits   USB Universal Serial Bus     
 Unearned Premium   Utility Coal     
                 
                   
 
 
       
       
 

Unearned Premium

Insurance Term


Unearned premium refers to the portion of an insurance premium that has been paid in advance but has not yet been earned by the insurer. It is an amount that the insurer owes to the policyholder in the event that the policy is cancelled or terminated before the end of the policy term.

Unearned premium is used as a liability on the financial statements of insurance companies. It is important for insurers to keep track of unearned premiums as they impact their financial position and profitability.

To calculate unearned premium, insurers use a pro-rata method. This involves dividing the total premium by the number of days in the policy term, and then multiplying that amount by the number of days that remain in the current policy term.

For example, if a policy has a total premium of $1,200 for a 12-month term, the insurer would divide $1,200 by 365 days to get a daily rate of $3.29. If the policy has been in effect for three months, the insurer would then multiply $3.29 by 273 days (365 ' 92) to get an unearned premium of $897.17.

Unearned premium is an important calculation for insurers as it impacts their profitability and financial stability. By accurately calculating unearned premiums and maintaining proper reserves, insurers can ensure they have the financial resources to pay out claims and maintain their operations.


   
     

Unearned Premium

Insurance Term


Unearned premium refers to the portion of an insurance premium that has been paid in advance but has not yet been earned by the insurer. It is an amount that the insurer owes to the policyholder in the event that the policy is cancelled or terminated before the end of the policy term.

Unearned premium is used as a liability on the financial statements of insurance companies. It is important for insurers to keep track of unearned premiums as they impact their financial position and profitability.

To calculate unearned premium, insurers use a pro-rata method. This involves dividing the total premium by the number of days in the policy term, and then multiplying that amount by the number of days that remain in the current policy term.

For example, if a policy has a total premium of $1,200 for a 12-month term, the insurer would divide $1,200 by 365 days to get a daily rate of $3.29. If the policy has been in effect for three months, the insurer would then multiply $3.29 by 273 days (365 ' 92) to get an unearned premium of $897.17.

Unearned premium is an important calculation for insurers as it impacts their profitability and financial stability. By accurately calculating unearned premiums and maintaining proper reserves, insurers can ensure they have the financial resources to pay out claims and maintain their operations.


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