Unearned Premiums Law and Legal Definition

Unearned premiums mean “those amounts which shall cover the cost of carrying the insurance risk for the period for which the premiums have been paid in advance. Such term includes all unearned premiums, whether or not required by law.” [26 CFR 1.801-3; Title 26-Internal Revenue; Chapter I-Internal Revenue Service, Department Of The Treasury; Subchapter A-Income Tax; Part 1-Income Taxes; Normal Taxes And Surtaxes; Insurance Companies; Life Insurance Companies; Definition; Tax Imposed]