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Unearned premium: Fund that contains the portion of the premium that may be returned to the policyholder for insurance that has not yet been provided has been paid in advance if a claim resulting in a total loss takes place before the end of the policy term, and eliminates the need for continued coverage. If either party cancels the contract, the insurer must have the unearned premium ready to refund.
See also:
bad faith claim
split limits
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