| has gloss | eng: Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. For instance, if a 365-day policy with a full premium payment at the beginning of the term has been in effect for 120 days, 120/365 of the premium is considered earned. Conversely, 245/365 of the premium is considered unearned. The calculations differ for policies where premiums are monthly, quarterly, or based on some other schedule besides full initial payment. |