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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
If the premium is a single premium received at the inception of the financial guarantee insurance contract, the insurance enterprise shall initially measure the unearned premium revenue at the amount received.
Obviously, there is significant flexibility in determining the FMV, but, if nothing else, ITR (17) plus unearned premiums is a recurring theme in IRS guidance.
* Reduction in Deduction for Unearned Premium. The computation of taxable income includes the determination of "underwriting income," which is the "premiums earned on insurance contracts during the taxable year" less losses incurred and expenses incurred.
They typically measure policyholder funds as a proportion of unearned premiums and loss reserves.
During the same period, combined unearned premium reserves, and loss and loss-adjustment expense reserves, have more than tripled.
As at December 31, 2015, in-force premium was $210.6 million and the Company's gross unearned premium reserve was $108.2 million.
Tower will also buy from ANV unearned premium reserves related to the business, it said.
It is also advisable to discuss with the general agent or insurer any specific facts concerning the transaction, such as cancellation dates, endorsement dates and any earned and unearned premium, so that the response will be consistent with the potential response provided by the general agent or insurer to the department.
However, net profit in the period decreased to AED 72 million ($20 million) from AED 87 million ($24 million) compared to the same period last year, driven by the proactive implementation of draft UAE insurance regulation on unearned premium reserves and a provision for doubtful debt.
In the preamble to the proposed regulations, the IRS discusses the efficacy of the annual statement, and its perception that statutory accounting rules have changed in recent years (perhaps in an attempt to avoid the full application of the 20% unearned premium reduction).
We book the unearned premium that is transferred to us from Citizens at the time of the assumption as assumed written premium.