In practice, however, the premium is not always paid at the time of purchase of the policy; Insurance policies are often taken out by brokers and open accounts are held between them and insurers, in which they are debtors of all premiums, and sometimes banknotes or bills of exchange are given for the amount of the premium. PREMIUM, contracts. The consideration paid by the insured to the insurer for the purchase of insurance. It is so called because it is paid first, or before the contract takes effect. Poth. H.T. No. 81; Mballo. Inst. 234. 2.
In practice, however, the premium is not always paid when the policy is taken out. Insurance policies are often taken out by brokers and open accounts are held between them and insurers, in which they are debtors of all premiums, and sometimes banknotes or bills of exchange are given for the amount of the premium. 3. When French authors talk about the consideration for maritime loans, they use a variety of words to distinguish them according to the nature of the case. Therefore, they call it interest when it is set that they will be paid monthly or at other specified periods. It is a premium when there is a gross amount to pay at the end of a trip, and here risk is the main objective they have in mind. If the amount is a percentage of the money borrowed, they call it an exchange, looking at it in light of money lent to one place that needs to be returned to another place, the amount between the amount borrowed and the amount paid being different from the difference in time and place. If they intend to combine these different nuances into a general designation, they use the term maritime profit to convey their meaning. Hall on Mar.
Loans, 56, n. Vide Park, Ills. h.t. Poth. H.T.; 3 Kent, Com. 285; 15 East, paragraph 309, note per day, and the decisions cited. n. Contract (insurance policy) in which the insurer (insurance company) undertakes to pay the insured a commission (insurance premiums) to reimburse the insured for all or part of any damage suffered as a result of an accident or death. Losses covered by the policy may include property damage or loss due to accident, fire, theft or intentional damage; medical expenses and/or loss of income due to bodily injury; long-term or permanent loss of physical performance; Claims by others due to alleged negligence of the insured (e.g. commercial liability insurance); loss of a vessel and/or cargo; finding a defect in the real estate title; dishonest employees; or the loss of a person`s life.
Life insurance can cover the life of a spouse, child, business partner or particularly important manager (“key man” insurance) designed to provide for all survivors or reduce the burden of losing a financial contributor. The so-called “mortgage” insurance is a life insurance policy that repays the balance of a mortgage on the death of the husband or wife. Life insurance proceeds are generally not included in a deceased person`s estate, but funds may be accounted for by the Internal Revenue Service when calculating inheritance tax. Insurance companies may refuse to pay a third-party claim against an insured, but at the same time may be required to provide legal defense (pay attorneys` fees or provide counsel) under the “reservation of rights” doctrine. Experienced investors sometimes sell an option (also known as subscribing to an option) and use the premium received to cover the purchase cost of the underlying asset or another option. Buying multiple options can increase or decrease the risk profile of the position, depending on how it is structured. The buyer of an option has the right, but not the obligation, to buy (call) or sell (put) the underlying instrument at a specific strike price for a specific period of time. The premium paid is its intrinsic value plus its time value; A longer-term option always costs more than the same short-term structure. Market volatility and the proximity of the strike price to the prevailing market price also influence the premium. Premiums are paid for many types of insurance, including health insurance, landlords, and rental insurance. A common example of an insurance premium comes from auto insurance. A vehicle owner can insure the value of their vehicle against losses due to accident, theft, fire, and other possible problems.
The owner usually pays a fixed amount of premiums in exchange for the insurance company`s guarantee to cover economic losses incurred under the agreement. Premiums depend on both the risk associated with the insured and the desired amount insured. A bonus or bonus; consideration for inviting a loan or transaction as consideration paid to the transferor by the transferee of a lease or to the transferor by the purchaser of shares, etc. Amount paid or agreed by an insured to the insurer (insurer) in return for the insurance. The price of insurance coverage for a given exposure period. Premium has several meanings in finance, the first being the total cost of buying an option. A premium is also the difference between the price paid for a fixed-income security and the nominal amount of the security in question.