What is Earned Premium?
Earned premium is the part of the premium (collected by the insurance company) that can be attributed to the period of the policy that is already over. For e.g. if you are paying $1200 per year as premium for a particular risk coverage for a year, and the first 3 months of the policy period is already over without any claims reported, then $300 is the earned premium. This term is mainly used by the companies while reporting their financial statements, to account for the per