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

adjective best, capital, choice, desirable, elect, estimable, excellent, fine, finest, first-class, first-rate, grade A, high-grade, high-quality, incomparable, matchless, peerless, precious, prime, quality, second to none, select, specially selected, splendid, superb, superior, superlative, top-notch, unbeatable, unmatched, unparalleled, unrivaled, unsurpassed, very fine, worthy

premium

(Excess value), noun amount over par, bonus, bounty, charge beyond normal, charge to excess, excessive charge, extra, incentive, increased value, prize

premium

(Insurance payment), noun amount paid peeiodically, annual commitment, annual encumbrance, annual fee, annual installment, annual liability, annual obligation, annual payment, annual rate of insurance, annual remittance, contract payment, periodic payment, yearly payment
Associated concepts: assessment of a premium, earned premiums, gross premium, net premium, reduction of premium
See also: bonus, bounty, gratuity, payment, perquisite, present, price, prize, profit, remittance, reward

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 ?
A worker who rejects affordable employer coverage with a minimum value cannot get the ACA premium tax credit.
Based on the model in Massachusetts, the federal government added (1) the individual mandate that all people who can afford to pay must obtain coverage or pay a penalty, and (2) the premium tax credit to make the premiums affordable for low- and moderate-income people.
And if receiving the health premium tax credit frees up some funds for a family to use to purchase dental coverage for its adult members, we could see improved oral health care outcomes for New Hampshire adults, too.
Individuals who purchase health insurance coverage through the marketplace may be eligible for a premium tax credit intended to alleviate the cost.
Tommy Williams, R-The Woodlands, is crafting a Medicaid reform plan that would use premium tax revenue to subsidize private health plans for uninsured Texans, his office confirmed on Tuesday night.
The push for the total lifting of the premium tax comes following the move of the government last year to reduce the premium tax from 5 to 3 percent.
Finally, the Treasury Department issued a proposed regulation that explains how individuals and families can receive premium tax credits for purchasing health insurance.
For many years, states have tried and failed to harmonize their laws governing interstate surplus lines transactions, especially the issue of premium tax allocation.
The bill includes language to standardize the reporting, allocation, and payment of non-admitted insurance premium tax on multi-state risks.
According to the AA, the increase was less than the previous quarter but added to the cost of driving ahead of fuel duty and VAT increases in January as well as the 1% increase in Insurance Premium Tax.
The insurance companies operating in Bulgaria declared themselves against the premium tax as soon as the idea was first floated several weeks ago.
The subcommittee thus proposed to impose a premium tax rate on the conventional corporate income tax rate for groups of companies that opt to pay taxes as a group.