An insurer's premiums written are comprised of which premiums derived from policies and policy endorsements entered in a given accounting period.

Question

Options

• Aaggregate
• BUnearned
• Creinsurance
• DEarned

• A
  72% (23)
• B
  3% (1)
• C
  16% (5)
• D
  9% (3)

Explanation

Premiums written represent the aggregate (total sum) of all premiums recorded from policies and endorsements entered during a specific accounting period - making A correct because "aggregate" captures the full collection of written premiums before any earned/unearned split occurs.

Why the distractors are wrong:

• B (Unearned): Unearned premiums are only the portion of written premiums covering future policy periods - a subset, not the whole.
• C (Reinsurance): Reinsurance premiums flow from a primary insurer to a reinsurer to transfer risk - a separate transaction, not the definition of premiums written.
• D (Earned): Earned premiums are the portion of written premiums attributable to the expired coverage period - again a subset, calculated after the fact.

Memory tip: Think of the accounting entry: when a policy is written, the insurer aggregates all premiums into premiums written first - then later splits them into earned vs. unearned. "Written = Aggregate, then split."

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