Unearned Premium Pro Rata Calculator
Split a written premium into the unearned portion on a straight-line pro rata temporis basis.
Description
Split a written premium into the unearned portion on a straight-line pro rata temporis basis.
Unearned Premium Pro Rata Calculator provides a focused, reproducible calculation with explicit inputs and a deterministic result. Split a written premium into the unearned portion on a straight-line pro rata temporis basis.
Use for a straight-line pro-rata-temporis split of premium over a policy term.
When to use Unearned Premium Pro Rata Calculator
Use for a straight-line pro-rata-temporis split of premium over a policy term.1
How the calculation works
Split a written premium into the unearned portion on a straight-line pro rata temporis basis.2
Unearned premium = written premium × unexpired days / term days Inputs and interpretation
Keep every input on the same valuation, timing, unit, and assumption basis. Interpret the output at the precision supported by those inputs rather than treating extra decimal places as additional certainty.
Limitations and assumptions
Cancellation rules, short-rate tables, fees, taxes, earning curves, and regulatory accounting can produce different amounts.
References
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Bornhuetter-Ferguson Initial Expected Loss Ratio Working Party Paper — Casualty Actuarial Society
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Insurance — Wikipedia contributors
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