Written premiums represent the total premium charged for policies issued during a period, regardless of whether the coverage has begun.

Written premiums represent the total premium charged for policies issued during a period, regardless of whether the coverage has begun.

• A. False
• B. True
• C. Only for auto policies
• D. Only for personal lines

Answer: (B)

Written premiums reflect the volume of new business by counting the premium charged on policies issued during the period, regardless of when the coverage actually begins. This means that as soon as a policy is issued, the premium is considered written, even if its effective date is in the future. That’s why this statement is true: the measurement is tied to the date of issuance, not to the start of coverage. For context, earned premium is a different concept—it represents the portion of the written premium that has been "earned" as the insurer provides coverage over time. If a policy starts later, a large portion of the written premium may be earned in future periods, not the period in which it was written.

Written premiums reflect the volume of new business by counting the premium charged on policies issued during the period, regardless of when the coverage actually begins. This means that as soon as a policy is issued, the premium is considered written, even if its effective date is in the future. That’s why this statement is true: the measurement is tied to the date of issuance, not to the start of coverage.

For context, earned premium is a different concept—it represents the portion of the written premium that has been "earned" as the insurer provides coverage over time. If a policy starts later, a large portion of the written premium may be earned in future periods, not the period in which it was written.