The difference between premium paid by insured and the portion the insurance company must return to his if the policy is cancelled during its term; the amount of premium at anytime which pays for the coverage furnished by the insurance company during the expired portion of the policy term.
Earned Premium
The difference between premium paid by insured and the portion the insurance company must return to him if the policy is cancelled during its term; the amount of premium at anytime which pays for the coverage furnished by the insurance company during the expired portion of the policy term.
Economic Obsolescence
Loss of value of property due to economic developments, e.g., deterioration of neighborhood.
Effective Date
The date an insurance policy comes into effect, or the date additional coverage come into force.