14 December 2013
Payment made in advance in return for insurance services that are to be rendered over a specified period of time. A person or entity who purchases prepaid insurance is called a policy holder. They are liable for any deductibles should an insurance claim be filed. This is accounted for as a short-term asset or a prepaid expense on company books.
14 December 2013
premium paid for the insurance for current financial period would be referred to as insurance. premium paid for insurance for future period will be called prepaid insurance.
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