PREMIUM (

See also:

• LAT

Lat. praemium, profit,

See also:

• REWARD

reward, prae+emere, to buy)  , in general, a reward or prize; a consideration . In the law of insurance, the sum of money or consideration (either annual or in a lump sum) which the insured pays the insurers in order to gain a certain amount in the event of some specific loss happening is termed a premium . The word is applied to the fee paid in consideration of being taught a trade or profession . It is also used in the sense of " bonus," as something beyond or additional, as in the phrases, " premium bonus system," " premium system," where a bonus or sum is given in addition to wages in proportion to the value of the work done . On the stock exchange, when a security has not yet been fully' paid up, it is customary to quote its price at par, or so much premium or discount . Par represents the amount actually paid up on it, while if it is above the level it is said to be at a premium of so much, or if below at a discount .