contracts. The consideration paid by the insured to the insurer for making an insurance. It is so called because it is paid primo, or before the contract shall take effect. Poth. h. t. n. 81; Marah. Inst. 234. 2. In practice, however, the premium is not always paid when the policy is underwritten; for insurances are frequently effected by brokers, and open accounts are kept between them and the underwriters, in which they make themselves debtors for all premiums;, and sometimes notes or bills are given for the amount of the premium.
Law Dictionary – Alternative Legal Definition
The sum paid or agreed to be paid by an assured to the underwriter as the consideration for the insurance; being a certain rate per cent on the amount insured. A bounty or bonus; a consideration given to invite a loan or a bargain; as the consideration paid to the assignor by the assignee of a lease, or to the transferrer by the transferee of shares of stock, etc. So stock is said to be “at a premium” when its market price exceeds its nominal or face value. See Pab. In granting a lease, part- of the rent is sometimes capitalized and paid in a lump sum at the time the lease is granted. This is called a “premium.” Premium note. A promissory note given by the insured for part or all of the amount of the premium. Premium pudicitise. The price of chastity. A compensation for the loss of chastity, paid or promised to, or for the benefit of, a seduced female.