Earned Premium
« Back to Glossary Index
- That portion of premium earned or charged for the period of time a policy remained effective. For example, an annual policy paid for in advance would be one-twelfth “earned” at the end of the first full month of its term.
- An amount calculated by taking earned premium reserve at the beginning of the period plus premium written during period, less unearned premium reserve at end of period.
- Premium actually exposed to loss.