Question
An amount of premium for which payment has been made by the policyholder but coverage has not yet been provided is known as?
Solution
Unearned premium is the premium corresponding to the time period remaining on an insurance policy. These are proportionate to the unexpired portion of the insurance and appear as a liability on the insurer's balance sheet, since they would be paid back upon cancellation of the policy.
More Insurance Awareness Questions
- Which feature is not allowed in the Indian insurance market?Â
- An auto-mobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and th...
- In Insurance policies we always find a date which is “Date of Maturity”. What does it mean?
- The free-look period is of how many days ?
- Mortality Charge is the amount charged _____________ by the insurer
- Which among the following is not a characteristic of ethical behaviour?Â
- What term applies to conditions that must be met before the insurer’s obligations arise?Â
- Machinery Breakdown insurance covers:
- What is the insurance of commercial property that protects the property from such perils as fire, theft and natural disaster?
- The Non-Governmentorganizations(NGO) helps the insurance industry mainly in?
