What does "earned premium" represent in insurance terms?

"Earned premium" refers to the portion of the premiums that an insurance company has actually earned through the provision of coverage during a specific period. This means that if a policy is in force and coverage is being provided, the insurer can recognize the premium as earned for that portion of time.

In contrast, the total premiums collected by the insurer signifies all premiums received, regardless of the coverage period, which does not accurately represent the insurer's income for the current coverage period. Projected future income from premiums concerns anticipated earnings and does not reflect income that has already been recognized. Unpaid premiums are amounts that policyholders owe and do not factor into what has been earned by the insurer. Hence, the correct answer shows that earned premium specifically correlates to the income earned for coverage that has already been provided.