unearned premium reserve

An insurance company’s reserve that represents premiums that have been received in advance but not yet applied to policy coverage.

• If a policyholder cancels coverage before the policy expires but has already paid a premium for the full policy period, the insurance company refunds the policyholder out of this reserve. [Cases: Insurance 1139. C.J.S. Insurance §§ 106–107, 116–118.]

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词条贡献者

法律翻译Cathy，在一家英国银圈所担任专职法律翻译，擅长翻译有关城市基础设施领域的法律文件。