A reserve account that contains the portion of an insurer's premium attributable to the unexpired period of a policy that has been collected but has not yet been recognized as earned premium and accounted for as revenues.
(See: reserve, unearned premium.)
The amount equal to the unconsumed portion of the gross premium of all outstanding policies at the time of valuation.
A liability set up in insurance carriers' financial statements which, in theory, represents the aggregate amount which a carrier would require in order to return to each policyholder the unearned portion of the premium of each policy in force, should the carrier retire from business and cancel all outstanding policies as of a given date.
General] the liability for the UNEARNED PREMIUM as of a VALUATION DATE
A reserve equal to an amount of net premium written but not yet earned.
The amount shown in the insurance company's balance sheet which represents the approximate total of the premiums which have not yet been earned as of a specific point in time. See also Unearned Premium.