unearned premium reserve
- This is a fund where an insurance company keeps payments that it has received but not yet used to provide insurance coverage. If the policyholder cancels their policy before the end of the period covered by these payments, the company will refund them from this reserve
- The unearned premium reserve is usually taken into account by insurance firms during financial reporting.
- If she cancels her insurance plan early, she will receive a refund from the unearned premium reserve.
- The unearned premium reserve acts as a safeguard for policyholders who decide to terminate their contracts prematurely.
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