This glossary is for non-commercial educational purposes only. The
definition of the
terminology below is only a brief description and should not be considered factual or
the only definition possible. This information is only to help better inform you
of information related to liquidations.
A court-approved process whereby liquidators can distribute estate assets to insurance guaranty associations prior to a final estate distribution in order to decrease the need for assessments against member insurers.
Earned Premium
The portion of the policy premium equal to the expired portion of the policy term for which the insurance coverage is in effect. Thus insurance on which premium has been paid one year in advance, will be, at the end of six months, half earned by the insurance company.
Effective Date
The date on which coverage begins under an insurance policy.
