Cheap Auto Quote, Common Auto Insurance Terms Starting with the Letter E
Earned premium: Earned premium is the portion of a policy premium that has been used to actually buy coverage, or that the insurance company has “earned.” For instance, if you have a six-month policy that you paid for in advance, two months into the policy, there would be two months of earned premium. The remaining four months of premium is called unearned premium.
Endorsement: Endorsement is a written agreement attached to a policy expanding or limiting the benefits otherwise payable under the policy. Same as a “rider.”