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Insurance

Unearned premium

One key concept in insurance is the unearned premium, which refers to the portion of the premium that has been received by the insurer but has not yet been used to provide coverage. It is important to note that the entire premium is not considered earned until the policy period has ended, even though premiums are usually paid in advance. This means that the unearned premium represents potential liability for the insurer until the policy period is over.
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