Question

In insurance accounting, what is "unearned premium"?

A Premium paid by the policyholder in advance Correct Answer Incorrect Answer
B Premium that remains unpaid by the policyholder Correct Answer Incorrect Answer
C Premium refunded to the policyholder Correct Answer Incorrect Answer
D Premium paid by the insurer to the policyholder as a bonus Correct Answer Incorrect Answer
E Premium paid by the reinsurer to the insurer Correct Answer Incorrect Answer

Solution

Explanation: Unearned premium refers to the portion of the premium that has been collected by the insurer but corresponds to the period of coverage yet to be provided.

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