Legal Definition and Related Resources of Premium

A consideration ; a reward for an act done; a bounty or bonus . Also, the annual or periodic payment made by an insured to the insurer in consideration of the insurer issuing the policy of insurance or renewing the same.

(from Lat. praemium, reward). The sum paid or agreed to be paid by an assured to the insurers, as the consideration for the insurance; being a certain rate per cent, on the amount insured. 1 Phil. Ins. 205; 3 Kent, Comm. 253. The price of a risk.

(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 break-even time, the time it takes to recover the premium per share of a convertible security.

If a bond is selling above its face value, it is said to sell at a premium.

The amount by which a bond or preferred stock may sell above its par value. May refer, also, to redemption price of a bond or preferred stock if it is higher than face value.

The amount you or your employer pays in exchange for health insurance coverage

(Excess value), noun

• amount over par
• bonus
• bounty
• charge beyond normal
• charge to excess
• excessive charge
• extra
• incentive
• increased value
• overcharge
• prize

(Insurance payment), noun

• amount paid periodically
• annual commitment
• annual encumbrance
• annual fee
• annual installment
• annual liability
• annual obligation
• annual payment
• annual rate of insurance
• annual remittance
• contract payment
• periodic payment
• yearly payment Associated Concepts: assessment of a premium
• earned premiums
• gross premium
• net premium
• reduction of premium

adjective

• best
• capital
• choice
• desirable
• elect
• estimable
• excellent
• fine
• finest
• firstclass
• firstrate
• grade A
• highgrade
• highquality
• incomparable
• inimitable
• matchless
• peerless
• precious
• prime
• quality
• second to none
• select
• specially selected
• splendid
• superb
• superfine
• superior
• superlative
• topnotch
• unbeatable
• unequaled
• unmatched
• unparalleled
• unrivaled
• unsurpassed
• very fine
• worthy

Browse or run a search for Premium in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Premium in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Premium in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Premium in the Legal Abbreviations and Acronyms Dictionary.

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Mentioned in these terms

Grace Period, Group Insurance, Insurance, Material Fact, Mutual Insurance Company, Refund Annuity.

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This definition of Premium is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.

Vocabularies (Semantic Web Information)

Premium Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Premium in a way that is easy for anybody to understand: (1) Excess amount paid for a BOND over its face amount. (2) In insurance, the cost of specified coverage for a designated period of time.

Concept of Premium in the context of Real Property

Alternatives definitions of Premium: (1) Money paid for an insurance policy. (2) A bonus. The opposite of a discount.

Concept of Premium in the context of Real Property

Alternatives definitions of Premium: (1)
Money paid for an insurance policy. (2) A bonus. The opposite of a discount.

Premium