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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
50% - Moderately
50% - Moderately
|Synonyms:||annuity premium, insurance premium, premium payment|
|Filed Under:||financial-banking, insurance|
Definition of premium
- 1. The amount paid by the insured to the insurer for insurance coverage, as set in the insurance policy. Premiums are paid to compensate the insurer for taking on liabilities and risk.
Related Terms and Acronyms:
- insurance (insur) An arrangement where one party provides financial protection to another party for specific damages or losses.
- insurance policy A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- mortality and expense risk charge A charge sometimes applied to reimburse an insurer for the risks in a policy.
- policy declarations The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
- pre-paid insurance A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
- reinsurance The process of one insurance company sharing liabilities from an insurance policy with another insurance company in order to lessen exposure, or in other words, insurance for insurers.
- underwriting (UW) Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
- underwriting guide The rules and guidelines an underwriter must follow while writing policies.
- vanishing premium policy A life insurance policy where policy dividends are used to pay the policy's premiums.
- variable universal life insurance (VULI) A form of life insurance with adjustable premiums, flexible investment options, and tax efficiency.
More Related Terms and Acronyms
- accommodation line — Definition
- annuity — Definition
- annuity consideration — Definition
- attained age — Definition
- declining life insurance — Definition
- developed to net premiums earned — Definition
- earned premium (EP) — Acronym
- first dollar coverage — Definition
- fixed expenses (FE) — Acronym
- fixed premium — Definition
- high deductible health plan (HDHP) — Acronym
- instalment — Definition
- paid-up additional insurance — Definition
- policyholder dividend ratio — Definition
- policyholder surplus — Definition
- premium-to-surplus ratio — Definition
- underlying retention — Definition
- unearned premium — Definition
- utilization — Definition
- with-profits policy — Definition
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