YOU ASK:
What is the definition of Premiums in Force?
WE ANSWER:
Premiums in Force (for life insurance) refer to the policies' face amounts (as well as dividend additions) that are in force at a certain time period. These include policies that haven't been expired as well as cancelled.
This is a key performance measure - not just for sales performance, but for the risk the company is carrying and has on its books at a certain point in time. This is used to indicate the size of the insurance company.
Premiums in Force are part of the reports an insurance company are required to submit to the state insurance commission. While Premiums in Force for life insurance companies are expressed as the face amount, this is expressed as premium volume in a health insurance company.
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More insurance terms around premiums in force:
- Premiums Written
- Primary Beneficiary
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