Answer-In insurance accounting, what is 'unearned premium'?

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.

Question

In insurance accounting, what is "unearned premium"?

A Premium paid by the policyholder in advance

B Premium that remains unpaid by the policyholder

C Premium refunded to the policyholder

D Premium paid by the insurer to the policyholder as a bonus

E Premium paid by the reinsurer to the insurer

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OICL AO Accounts

In insurance accounting, what is "unearned premium"?

Solution

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