Premium Note Law and Legal Definition

Premium note is a promissory note given in payment of the premium due on a policy of insurance.

Premium notes are required as capital of the company. They are payable when called for, according to the charter and by-laws of the company, to pay losses and expenses. [Fitzpatrick v. Troy Ins. Co., 9 F. Cas. 199 (U.S. Court of Appeals 1857)].