S17 Question 15 (Feldblum.Surplus)
What's the difference between Unearned premiums and Advance premium?
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What's the difference between Unearned premiums and Advance premium?
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Advance premium is paid ahead of the start of the relevant policy period. It can be an estimate of the premium that will ultimately be required. It is kept in an Advance Premium Fund account, separate from operations accounts.
Unearned portion of premium is that prorated to the portion of the policy period not yet elapsed. All advance premium is unearned premium.