The amount of a premium which is considered by the insurance company to have already been earned by them. It is calculated by taking the original premium value, and determining how long the policy has been in effect without having a claim filed, and then applying that percentage of time to the amount of the loan. This value is the amount that the insurance company counts as earned. For example, if there was a $1000 premium paid by the insured, for a policy to last five years, and one year (20% of the total time) had past without the insured filling a claim, the insurance company calculates their earned premium as 20% of $1000, or $200.
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earned premium - That portion of a policy's premium that applies to the expired portion of the policy.
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Something offered free or at a reduced price as an inducement to buy something else. 3. A sum of money or bonus paid in addition to a regular price, salary, ...