unearned premium reserve

  • lnsurance premiums are payable in advance. A company, however, "earns" the premium only as fast as time elapses. The Unearned Premium Reserve is the sum of all unearned premiums of all unexpired policies that the company has on its books.

    Internal Revenue Service 1
    See also unearned premium

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).