Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Premium
n 1 The periodic payment required to keep an insurance policy in effect. - Also termed insurance premium.
advance premium
A payment made before the start of the period covered by the insurance policy.
bond premium
.See PREMIUM (3)
call premium
The percentage amount of , bond's face value that a company pays, alone.; with the face value, to redeem a callable bon(i, the difference between a bond's call price and its par value.
control premium
A premium paid for shares carrying the power to control a corporation. 0 The control premium is often computed by comparing the aggregate value of the controlling block of shares with the cost that would be incurred if the shares could be acquired at the going market price per share.4. The amount paid to buy a securities option. - Also termed (in sense 4) option premium. premium bond. See BOND (3).
conversion premium. Securities
The surplus at which a security sells above its conversion price.
deposit premium
The initial premium paid by an insured pending the final premium adjustment.
earned premium
See PREMIUM (1).
gross premium
1.The net premium plus expenses (i.e., the loading), less the interest factor. See LOADING; INTEREST FACTOR. 2. The premium for participating life insurance. See participating insurance under INSURANCE.
gross premium.
See PREMIUM (1).
insurance premium
See PREMIUM (1).
level premium insurance
Insurance whose premiums remain constant throughout the life of the agreement. ( Most whole life policies are set up this way.
level-premium insurance
See INSURANCE.
natural premium
The actual cost of life insurance based solely on mortality rates. 0 This amount will be less than a net premium. See net premium.
net level annual premium
A net premium that stays the same each year.
net premium
1 Generally, the premium amount for an insurance policy less agent commissions. 2. The portion of the premium that covers the estimated cost of claims. 3. The money needed to provide benefits under an insurance policy. ( The net premium in a life-insurance policy is calculated by using an assumed interest and mortality-table rate; it does not include additional expense amounts that will be charged to the policyholder. -Also termed net valuation premium.
net single premium
The money that must be collected from a policyholder at one time to guarantee enough money to pay claims made on an insurance policy. ( This amount assumes that interest accrues at an expected rate and is based on a prediction of the likelihood of certain claims.
net valuation premium
See net premium.
option premium
See PREMIUM (4).
premium bond
A bond with a selling price above face or redemption value. See PREMIUM (3).
premium loan
A loan made to an insured by the insurer to enable the insured to pay further premiums. ( The reserve value of the policy serves as collateral.
premium note
See NOTE (1;
premium note.
A promissory note given by an insured to an insurance company for part or all of the premium.
premium on capital stock
See paid-in surplus under SURPLUS.
premium rate
Insurance. The price per unit of life insurance. ( It is usu. expressed as a cost per thousands of dollars of coverage. Life insurers use three factors - the interest factor, the mortality factor, and the risk factor - to calculate premium rates. - Sometimes shortened to rate. See INTEREST FACTOR; MORTALITY FACTOR; RISK FACTOR. premium stock See STOCK.
premium stock
Stock that carries a premium for trading, as in the case of short-selling.
premium tax
A state tax paid by an insurer on payments made by the insurer on behalf of an insured.
single premium insurance
Life insurance that is paid for in one payment rather than a series of premiums over time.
single-premium insurance
See INSURANCE.
step-rate-premium insurance
Insurance whose premiums increase at times specified in the policy.
unearned premium
The portion of an insurance premium applicable to the coverage period that has not yet occurred. ( In the same example as above under earned premium, the unearned premium after three months is $900. 2. A sum of money paid in addition to a regular price, salary, or other amount; a bonus. 3. The amount by which a security's market value exceeds its face value. - Also termed (specif.) bond premium. Cf. DISCOUNT (3).
unearned premium reserve
An insurance company's reserve that represents premiums that have been received in advance but not yet applied to policy coverage. ( If a policy holder cancels coverage before the policy ex pires but has already paid a premium for the full policy period, the insurance company re funds the policyholder out of this reserve. 2. RESERVATION (3). 3. See net value under VALUE. - reserve, vb.
unearned-premium reserve
See RESERVE.
waiver-of-premium clause
Insurance. A provision for a waiver of premium payments after the insured has been disabled for a specified length of time, such as six months.