Advance Premium
Barron's Insurance Dictionary:
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Advance Premium
Premium paid before the due date. For example, a premium is due on July 1, 2008, but the insured actually makes the premium payment on January 1, 2008, receiving a premium discount.
| Advance Payments, Advance Funding, Admitted Insurance | |
| Advanced Funded Pension Plan, Advanced Life Underwriting, Adverse Financial Selection |
Investopedia Financial Dictionary:
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Advance Premium
The initial premium paid to bind an insurance policy for a given period of time. The most commonly known use of the term "advance premium", is with respect to fluctuating insurance payments, such as payroll-based policies, where the actual amount due is not known until after the fact.
Investopedia Says:
Advance premium can also refer to pre-paid premiums, where the policyholder makes a premium payment before it is due.
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Barron's Insurance Dictionary
Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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