Premium

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Premium

A reward for an act done.

A bounty or bonus; a consideration given to invite a loan or a bargain, as the consideration paid to the assignor by the assignee of a lease, or to the transferer by the transferee of shares of stock, etc.

In granting a lease, part of the rent is sometimes capitalized and paid in a lump sum at the time the lease is granted. This is called a premium.

The sum paid or agreed to be paid by an insured to the underwriter (insurer) as the consideration for the insurance. The price for insurance protection for a specified period of exposure.

premium

n. 1) payment for insurance coverage either in a lump sum or by installments. 2) an extra payment for an act, option or priority.

PREMIUM, contracts. The consideration paid by the insured to the insurer for making an insurance. It is so called because it is paid primo, or before the contract shall take effect. Poth. h.t. n. 81; Marah. Inst. 234.
     2. In practice, however, the premium is not always paid when the policy is underwritten; for insurances are frequently effected by brokers, and open accounts are kept between them and the underwriters, in which they make themselves debtors for all premiums;, and sometimes notes or bills are given for the amount of the premium.
     3. The French writers, when they speak of the consideration given for maritime loans, employ a variety of words in order to distinguish it according to the nature of the case. Thus, they call it interest when it is stipulated to be paid by the month or at other stated periods. It is a premium, when a gross sum is to be paid at the end of a voyage, and here the risk is the principal object which they have in view. When the sum is a percentage on the money lent, they denominate it exchange, considering it in the light of money lent in one place to be returned in another, with a difference in amount between the sum borrowed and that which is paid, arising from the difference of time and place. When they intend to combine these various shades into one general denomination, they make use of the term maritime profit, to convey their meaning. Hall on Mar. Loans, 56, n. Vide Park, Ills. h.t. Poth. h.t.; 3 Kent, Com. 285; 15 East, R. 309, Day's note, and the cases there cited.

References in periodicals archive ?
Premium rates in Saudi Arabia rose in 2014 and 2015 following the introduction of actuarial reserving requirements in 2013.
The Health and Human Services Commission has requested that state lawmakers increase Medicaid premium rates - the amount paid to managed care companies to provide health services for Medicaid recipients.
In Maya Latvian company was given an identical Au50,000 finefor tempting users into downloading what appeared to be Android games apps that generated a minimum charge of Au15 in the form of premium rate SMS fees.
According to Graham Cluley, Senior Technology Consultant, Sophos, "A1 Agregator Limited ran the premium rate payment system used by the malware to fraudulently charge consumers' smartphones.
" International premium rate numbers of the three countries were taken by some persons in Italy and Saudi Arabia and passed on to the racket kingpin for making long calls from India through his Indian contacts," a CBI officer said.
Stockton, Middlesbrough and Redcar and Cleveland have confirmed they already had blocks on staff being able to telephone premium rate and international numbers.
Anyone who receives a card should contact Royal Mail Fraud on 0207 239 6655, ICSTIS (the Premium rate service regulator) at www.icstis.org.uk or Trading Standards on 01926 410410.
Under existing law, the maximum premium rate differential is 115 percent of the rate established for group coverage for individual proprietors who purchased group health insurance through associations, and will expire on December 31, 2008.
The number on the card - 0906 6611 911 - is a premium rate number, and anyone calling it will be charged up to pounds 15 for the call.
Concerned people should contact the premium rate services regulator, ICSTIS, at www.icstis.org.uk.
TELECOMWORLDWIRE-30 May 2007-Clickatell introduces mobile terminated premium rate SMS service in South Africa(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com