What Do ‘Earned’ and ‘Unearned’ Premium Mean?
What Do ‘Earned’ and ‘Unearned’ Premium Mean? Just like with the practice of law, the insurance industry seemingly has its own language. If you don’t work in insurance, it can be confusing – and even frustrating – to not understand the product you’re purchasing. To alleviate this, we’ve covered phrases like “claims-made policy,” “split limits” and even the name of the product itself. Here we’ll look at parts of your premium – specifically “earned” and “unearned.” First, let’s start with the premium....