MANAGEMENT

Detailed explanation-1: -The premium is the amount you would have to pay to an insurance company at regular intervals in order to keep the insurance contract in force. The payment could be made monthly, quarterly or annually. The premium amount varies based on what the insurance covers and the eligibility of the policyholder.

Detailed explanation-2: -Definition: Premium paying term is the total number of years for the policy holder to pay the premium. Definition: Policy term is normally equal to the premium paying term. However, some insurance policies give the insured the autonomy to choose a premium paying term lower than the policy term.

Detailed explanation-3: -Because they are unused, they are called unearned premiums. Similarly, if a policyholder pays $200 per month for a 12-month insurance policy and decides to terminate coverage after three months, the insurance company keeps $600 as earned premiums and refunds $1, 800 to the policyholder as unearned premiums.