Unexpired Insurance? Please, somebody help?

Question

It says that at the end of the year the amount of the insurance unexpiredwas $700. What does that mean? Does it mean u still have unpaid insurance or u have 700 dollars of prepaid insurance. Help will be very much appreciated.

Answer 1

you should definitly call them to find out.  That sounds tricky.

Answer 2

Not sure what kind of statement you are looking at but from the sound of it I gather it is saying this: You have a policy withan annual term. On the first day the insurance company has earned 1/365 of the premium (on a pro rata basis). After 10 days the insurer has earned 10/365 of the premium. The statement is saying that as of December 31 there is still 'x' number of days left on the policy before it expires. The number of days left over 365 multiplied by the premium is the unearned premium. So let's sat you took a policy out on July 1 at a premium of $1,400. As of December 31 half the policy term would still remain, therefore half the premium or $700 would still be unearned or unexpired as they call it. What this means monetarily to you depends on what the statement is for. Insurers do not usually send a year end statement to their insureds. The only time I have seen info like this is when a policy is cancelled mid-term and the insurer sends a statement to the insured showing how they calculated the balance due or refund owing, although usually an insurer usually shows it like this: Earned Premium (x) - Amount paid (y) = Amount due (if x>y) or Refund (if x<y). They don't usually use the unearned premium.

Without more information about what "it" is you are reading that is the best answer I can offer.

Answer 3

There is a lot of useful and intresting information here to help answer your quetion.

http://insurance.online-assistant.info