earned premium
- The portion of an insurance premium that has been 'used up' during a policy period and is not refundable to the policyholder if the policy is canceled
- If a certain policyholder cancels their insurance coverage after six months, the company is entitled to the earned premium for that period.
- The insurance company calculates the earned premium to determine how much the insurer has officially earned.
- The earned premium is usually noted in the insurer's financial statement to mark the realized income from the insurance policies in force.
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