Legal Definition and Related Resources of Premium

Meaning 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.

Premium Alternative Definition

(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.

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

International Trade Meaning and Definition of Premium

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

Legal Definition of 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.

What does Premium mean?

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

Synonyms of Premium

(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


  • 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

Related Entries of Premium in the Encyclopedia of Law Project

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.

Legal Abbreviations and Acronyms

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

Related Legal Terms

You might be also interested in these legal terms:

Mentioned in these terms

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


You might be interested in these references tools:

Resource Description
Premium in the Dictionary Premium in our legal dictionaries
Browse the Legal Thesaurus Find synonyms and related words of Premium
Legal Maxims Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law
Legal Answers (Q&A) A community-driven knowledge creation process, of enduring value to a broad audience
Related topics Premium in the World Encyclopedia of Law


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

Vocabularies (Semantic Web Information)

Resource Description
Topic Map A group of names, occurrences and associations
Topic Tree A topic display format, showing the hierarchy
Sitemap Index Sitemap Index, including Taxonomies The URI of Premium (more about URIs)

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.



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