What the balance represents
A premium receivable records an amount due under the applicable billing and accounting arrangements. It may involve a policyholder, intermediary, or another responsible party, depending on the contract.
Claims payable concerns an insurer's obligations for claims, rather than premium amounts owed to it.
A remaining-balance example
Hypothetical example: An insurer records an $800 premium receivable and applies a $500 receipt. If the original amount remains valid and there are no other adjustments, the remaining receivable is $300.
Endorsements, billing corrections, cancellations, returns, and other approved adjustments can change that amount.
Separate collection from earning
Written premium, earned premium, unearned premium, receivables, and cash collected describe different aspects of the insurance business. Recognition, valuation, and reporting depend on the applicable accounting framework.
An unpaid balance is not automatically unearned premium, and collected cash is not automatically all earned revenue.
Reconcile before follow-up
Check policy and installment references, applied and unapplied receipts, disputes, reversals, and billing changes. Age balances using a defined date basis and account for intermediary reporting delays where relevant.
Do not request another payment merely because a received amount has not yet been allocated. Policy continuation, cancellation, and reinstatement require separate authorized review.
Track balance accuracy, aging, unmatched cash, and exception-resolution time.