earned premium

earned premium definition - business

earned premium

In insurance, the portion of a premium that has been used by the insurance company to provide coverage. Premiums are typically paid ahead of coverage, so that the earned portion increases gradually over the life of a premium. Compare unearned premium.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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