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earned premium (EP)

Earned premium (EP) is that part of a policy's premium that applies to the expired portion of the policy.

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earned premium (EP)

Earned premium (EP) is that part of a policy's premium that applies to the expired portion of the policy.

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Although insurance premiums are often paid in advance, insurers typically "earn" the premium at an even rate throughout the policy term. The unearned portion of the premium that has been paid is kept in the "unearned premium reserve."

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