From the insurance company's perspective, what is the difference between written premium and earned premium?

From the insurance company's perspective, what is the difference between written premium and earned premium?


A) There is no difference; they are effectively the same thing.

B) Written premiums are those that belong to the insurer; earned premiums do not belong to the insurer.

C) Written premiums are the total premiums collected by the insurer; earned premiums are those that belong to the insurer.

D) Written premiums reflect the total amount of coverage provided to insureds; earned premiums reflect the net profit of the insurer.


Answer: c

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