Glossary

Premises burglary coverage is the Insurance Services Office, Inc. (ISO), crime form E, CR 00 06. Covers loss of property, other than money and securities, stolen from within the insured's premises or taken from a watch guard inside the premises.

Premises theft and outside robbery coverage form H is Insurance Services Office, Inc. (ISO), crime form (CR 00 09) that covers property other than money and securities for theft from inside the premises and robbery of a messenger away from the premises.

A premium is the amount of money an insurer charges to provide the coverage described in the policy or bond.

Premiums earned refer to the portion of the written premium allocable (usually pro rata) to the time already elapsed under the policy period.

The premium, advance is charged at the inception of the policy in cases where the final premium of the policy is not determined until the policy has expired; for example, where the policy premium is determined on an exposure base such as payroll that is subject to final audit adjustment.

Premium audit is an audit of the exposure basis for an insurance policy (i.e., payroll, sales, or vehicle count) after the end of a policy period to determine the actual (audited) exposure for the purpose of making a final calculation of the premium and premium taxes.

Premium capacity is the total amount of premiums for all exposures that the insurer can safely write in a given period.

Premium discount is a volume discount applied to premiums that acknowledges the administrative cost savings associated with larger premiums.

The premium load is the percentage of insurance premium deducted from the premium payments for universal life insurance policies to cover policy expenses, including the agent's sales commissions.

A premium loan is an amount borrowed against the cash value of a life insurance policy to make a premium payment, allowing the policy to stay in force.