Auto policy?
what does earned premium identify mean if your policy should reverse?
Answers: Earned premium is the premium due for the time the policy was contained by force. For example (very simplified), you have a $1200 policy, you compensated the first & second quarterly payments ($600), but you cancelled after the 7th month. You only remunerated $600 but the company provided you with 7 months of coverage. Since contained by this case the premium is $100 per month, the earn premium is $700. you would owe $100 after the cancellation be processed. Your final notice would utter something like:
Annual policy premium: $1200
Cancellation date_____(7 months into policy)
Earned premium: $700
Unearned premium: $500
Premium salaried: $600
Balance Due: $100
It means, you still owe that money, for the time the insurance be still in force. You owe them money and they are attempting to collect