- premium
- A reward for an act done. Brown v. Board of Police Com'rs of City of Los Angeles, 58 Cal.App.2d 473, 136 P.2d 617, 619.See also bonusA bounty or bonus; a consideration given to invite a loan or a bargain, as the consideration paid to the assignor by the assignee of a lease, or to the transferor by the transferee of shares of stock, etc. So stock is said to be "at a premium" when its market price exceeds its nominal or face value. The excess of issue (or market) price over par value.See par.In granting a lease, part of the rent is sometimes capitalized and paid in a lump sum at the time the lease is granted. This is called a "premium." The sum paid or agreed to be paid by an insured to the underwriter (insurer) as the consideration for the insurance. The price for insurance protection for a specified period of exposure.See also earned premium@ advance premiumPayment made at the start of the period covered by the insurance policy@ premium noteA promissory note given by the insured for part or all of the amount of the premium. Securities. The amount by which a preferred stock or bond may sell above its par (face) value. In the case of a new issue of bonds or stocks, premium is the amount the market price rises over the original selling price. Also refers to a charge sometimes made when a stock is borrowed to make delivery on a short sale. May refer, also, to redemption price of a bond or preferred stock if it is higher than face value.@ unearned premiumPortion of original premium not yet earned by insurance company and therefore due policyholder if the policy should be cancelled. In accounting, the account which reflects that portion of a premium that has been paid for insurance coverage which has not yet been extended. The basic insurance reserve in the casualty insurance business. Since policyholders typically pay the full premium in advance, the premium is wholly "unearned" when the primary insurer receives it. United States v. Consumer Life Ins. Co., 430 U.S. 725, 729, 97 S.Ct. 1440, 1443, 52 L.Ed.2d 4.See I.R.C. No. 801(c)@ premium bondBond with selling price above face or redemption value.See also, bond premium.- bond@ premium loanLoan made for purpose of paying an insurance premium and secured by the policy@ premium pudicitiae/priymiyam pyuwdasishiyiy/ The price of chastity. A compensation for the loss of chastity, paid or promised to, or for the benefit of, a seduced female@ premium taxTax paid by insurer on gross insurance premiums sold in state@
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.
