premium

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 bonus
A 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.
@ advance premium
Payment made at the start of the period covered by the insurance policy
@ premium note
A 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 premium
Portion 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 bond
Bond with selling price above face or redemption value.
See also, bond premium.
@ premium loan
Loan 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 tax
Tax paid by insurer on gross insurance premiums sold in state
@

Black's law dictionary. . 1990.

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  • premium — pre·mi·um / prē mē əm/ n 1: the difference between the face value or par value of a security and its market price when the latter is greater compare discount 2: the price paid for an insurance contract equal to the cost per unit times the number… …   Law dictionary

  • premium — [ premjɔm ] n. m. • XXe; mot lat. « butin » ♦ Fin. Prime versée pour une opération sur un marché à terme. ⇒ option. On écrirait mieux prémium. ● premium nom masculin (latin praemium, butin) Somme payée au vendeur d une option d achat (ou de… …   Encyclopédie Universelle

  • premium — premium, prize, award, reward, meed, guerdon, bounty, bonus are comparable when they mean something which is bestowed upon a person as a recompense for cooperation, greater effort, superior merit, or supremacy in competition. Premium is applied… …   New Dictionary of Synonyms

  • Premium — Pre mi*um, n.; pl. {Premiums}. [L. praemium, originally, what one has got before or better than others; prae before + emere to take, buy. See {Redeem}.] 1. A reward or recompense; a prize to be won by being before another, or others, in a… …   The Collaborative International Dictionary of English

  • premium — ► NOUN (pl. premiums) 1) an amount paid for a contract of insurance. 2) a sum added to an ordinary price or other payment. 3) (before another noun ) (of a commodity) superior and more expensive. ● at a premium Cf. ↑at a premium …   English terms dictionary

  • premium — [prē′mē əm] n. pl. premiums [L praemium, reward, recompense < prae , before + emere, to take: see PRE & REDEEM] 1. a reward or prize, esp. one offered free or at a special low price as an added inducement to buy or do something; bonus 2. an… …   English World dictionary

  • premium — [adj] excellent choice, exceptional, prime, select, selected, superior; concept 574 Ant. inferior, low, low class, poor premium [n] bonus, prize appreciation, boon, bounty, carrot*, dividend, extra, fee*, gravy*, guerdon, meed, percentage, perk* …   New thesaurus

  • Premĭum — (engl., abgekürzt pm.), Prämie, auf englischen Kurszetteln im Gegensatz zum damno oder discount (abgekürzt dis.) soviel wie Aufgeld, Überschuß über den Paribetrag …   Meyers Großes Konversations-Lexikon

  • premium — (n.) c.1600, reward given for a specific act, from L. praemium reward, profit derived from booty, from prae before (see PRE (Cf. pre )) + emere to buy, originally to take (see EXEMPT (Cf. exempt)). Insurance sense is 1660s, from It. premio.… …   Etymology dictionary

  • premium — consideration paid for an insurance policy. Glossary of Business Terms (1) The additional payment allowed by exchange regulation for delivery of higher than required standards or grades of a commodity against a futures contract. (2) In speaking… …   Financial and business terms

  • Premium — (1) Amount paid for a bond above the par value. (2) The price of an option contract; also, in futures trading, the amount the futures price exceeds the price of the spot commodity. Related: inverted market premium payback period. Also called… …   Financial and business terms

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