Question

What does earned premium represent in insurance or reinsurance?

a.

The premium received by the reinsurer for assumed risks

b.

The premium income of an insurer adjusted for additional or return premiums

c.

The premium proportionate to the period of expired insurance or reinsurance

d.

The premium subject to adjustment on completion of the contract period

Posted under IC85 Reinsurance Management

Answer: (c).The premium proportionate to the period of expired insurance or reinsurance Explanation:Earned premium refers to the premium that is proportionate to the period of insurance or reinsurance that has expired. It represents the portion of premium for which there would be no further obligation to entertain any future claims.

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Q. What does earned premium represent in insurance or reinsurance?
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