GK
INSURANCE AWARENESS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Unpaid losses
|
|
|
Unearned Premium
|
|
|
Universal Life Insurance
|
|
|
Unauthorized Reinsurance
|
Detailed explanation-1: -Definition: Unearned premium is that part of the overall premium which is collected by the insurance companies beforehand, but for which protection is not provided.
Detailed explanation-2: -Earned Versus Unearned Premiums Earned premiums refer to any premium that is paid in advance and belongs to an insurer. Unearned premiums are collated in advance by insurance firms that are required to provide them back to insurance policyholders if coverage is terminated before the premium period is over.
Detailed explanation-3: -Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk.
Detailed explanation-4: -The unearned premium is defined as the portion of premium which is not earned yet or more precisely, “The amount of premium for which payment has been made by the policyholder but coverage has not yet been provided. The unearned premium is premium corresponding to the time period remaining on an insurance policy” [2].