net premiums earned

Definition

An annual adjustment of net premiums in accordance to an insurance company's liability for unearned premiums. In a growth cycle with increasing business, a company's earned premiums should be fewer than its written premiums. In a period of decreasing volume, the inverse is true.

Use net premiums earned in a sentence

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
policyholder dividend ratio underwriting expense ratio