That part of the premium applicable to the expired part of the policy period, including the short-rate premium on cancellation, the entire premium on the amount of loss paid under some contracts, and the entire premium on the contract on the expiration of the policy.
That portion of the reinsurance premium calculated on a monthly, quarterly or annual basis which is to be retained by the reinsurer should there cession be canceled.
When a premium is paid in advance for a certain time, the company is said to “earn” the premium as the time advances. For example, a policy written for three Years and paid for in advance would be one-third “earned” at the end of the first Year.