When is the premium considered fully earned according to insurance policies?

The premium is considered fully earned at the expiration of the policy period. This is because the insurance company has provided coverage for the entire duration of the policy and assumes the risk associated with that coverage until the end of the specified period.

When a policy reaches its expiration, the insurer has fulfilled its obligation to provide protection for the time the insured has paid for, meaning the entire premium is now income for the insurer. While a policy might be canceled before its expiration or a claim might be made during the policy term, these do not affect the timing of when the premium is fully earned. The premium is specifically tied to the full policy period, and it is only upon its completion that it is recognized as fully earned.