Thank you for taking my questions, and I hope both of you stay well and safe. And I'd be interested in knowing if there is any metric that relates to the technology and accident avoidance, that is in the new vehicle as the old ones fall off is a tour of if you see, it's showing up. Insurance premiums will vary depending on the type of coverage you are seeking. We will remain focused on price discipline, reserve adequacy and claim strategies for long-term profitability and value creation for all our constituent. I would anticipate that you will see continued improvement in the loss ratio through 2021. Yes, it's a a great question, Brett. This is driven by a combination of factors. We are considering various strategies to seek the most appropriate venue and other ways to bring the matter to a conclusion. Deferred Acquisition Costs (DAC) Definition. The insurance premium is the amount of money paid to the insurance company for the insurance policy you are purchasing. Greetings, and welcome to Protective Insurance Corporation Third Quarter 2020 Earnings Conference Call. Although Protective Insurance Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurances that expectations will be obtained. Okay. Normalizing for the Q2 frequency benefit, the accident quarter loss ratio improved by nearly 2 points from Q2. How should we look at that? Exposure basis and net [Phonetic] premiums have increased in segments focused on pickup and delivery and last mile. Earned Premium (EP) That portion of a policy's premium that applies to the expired portion of the policy. People pay for insurance coverage to protect themselves against financial loss. Protective Insurance Corporation (NASDAQ:PTVCA)Q3 2020 Earnings CallNov 4, 2020, 11:00 a.m. The surplus lines market, a group of highly specialized insurers, exists to provide coverage that is not available through licensed insurers in the standard insurance market. Yes, the mortgage-backed securities had a small unrealized loss there. Reviews from Protective Insurance employees about Protective Insurance culture, salaries, benefits, work-life balance, management, job security, and more. Life insurance share. 3 The insurance industry is cyclical (along with the business cycle) and competitive, with numerous participants fighting for market share primarily on the basis of price. With that greater simplicity comes a lower premium, so clients will get coverage at a more affordable price. It's something at the heart of our underwriting to pick the most safety-focused risks. Each year we experience claims where a lack of written safety procedures and effective training were contributing factors to a major accident. When an insurance company enters into a contract to provide insurance against a loss, the expected premiums are gross premiums. Density. My new insurance found out about it and has denied and unprocessed 15 claims from February to August and wants them to go through my old companies plan first. That is on appeal. We have a handful of other program opportunity -- programs on the books where we also see growth. Brett Reiss -- Janney Montgomery Scott -- Analyst. Yes, sure. Protective Insurance has a decades-long heritage of providing insurance for fleet trucking operations and specializing in workers’ compensation insurance for transportation-focused businesses. Insurance Model: Net Written Premiums, Unearned Premiums, and Income Statement. Consumers who want to purchase affordable life insurance from a financially stable insurer who offers a substantial insurance portfolio with fast underwriting should definitely consider Protective Life Insurance Company. We think that there are a lot of opportunities for us in last mile. Protective Life Corporation (Protective) provides financial services through the production, distribution and administration of insurance and investment products throughout the U.S. Most of the gains were in high beta fixed income investments. Thank you. You keep your market share, but the market grows. But I would just tell you again, that we are focused on as part of our underwriting to focused on the risks that we think are most focused on quality hardware, quality drivers, and good benefits for their drivers. Written premium is an accounting term in the insurance industry used to describe the total amount that customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Good morning, John. Net Earned Premium – Net written premium plus assumed premium, minus unearned premium. ET. But when and how should we expect to see that begin to be reflected in your revenue? Spreads across nearly all fixed income sectors tightened over the period with pricing gains most pronounced in the higher beta segments of the fixed income market, including high-yield bonds, CLOs and CMBS. During the quarter, we increased our CECL credit allowance related to the PSG staffing matter by $1.5 million. Written premiums are the principal source of an insurance company's revenues and appear on the top line of the income statement. So when you refer to the CMBS, I think you included that as part of that group. I'm very confident we will continue to improve our accident year underwriting results in Q4 and through 2021. Please go ahead. And not just for commercial auto, but also for other workers' comp and for occupational accident products that are obviously a huge part of what we do. I don't want to tell you when we think that we'll get there, but that is -- our long-term target is to run the portfolio with a 96% combined. The lower expense ratio for the third quarter is attributed to expense management and the benefit of fixed cost leverage with the strong growth in premium. Thanks, Jeremy. We are licensed in all 50 states, the District of Columbia, Puerto Rico and all Canadian provinces to provide comprehensive business insurance. Okay. And I'll now turn the call over to management for closing remarks. Every company is different, but life insurance agents may make 40% to 90% percent in commission of the first year premium on term life insurance. [Operator Instructions] And our first question is from Brett Reiss with Janney Montgomery Scott. I don't want to tell you that we're going to get there. Net premium, in the insurance industry, is calculated as the expected present value (PV) of a policy’s benefits minus the expected PV of future premiums. Gross premiums written and consolidated revenue continue to grow. Subsequent year commissions may drop off or can be much lower. And I think the entire insurance industry is going to struggle a little bit to achieve that right balance of risk and reward given the low interest rate environment. Last quarter, I believe you called out some fees, tie depending bankers for the strategic review and describe how that impacted the combined ratio. Thank you for your support. Moreover, we had healthy growth in our target segments in the quarter. Thank you, and thank you all for joining us this morning for the Protective Insurance Corporation's third quarter 2020 conference call. At this time, management would like me to inform you that certain statements made during this conference call and in the press release, which are not historical, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Salaries posted anonymously by Protective Insurance employees in Indianapolis. Please proceed with your question. Written premiums calculate the total amount customers agree to pay for insurance policies sold during the accounting period. With that, I'll now turn the call over to John. And certainly in the last nine months, we have moved into a more defensive position on the portfolio, which we think is the right thing to do given our capital position, as well as frankly, our continued focus on improving the underlying -- underwriting results. We are limiting ourselves to those fleets that we do think and have a safety culture. I'm assuming originally, you guys maybe were expecting Indiana, then it shifted to California and now back to Indiana. Hey, good morning. We're not where we want to be yet, but our progress is clear and sustainable. Insured policyholders pay premiums in advance, so insurers do not immediately consider premiums paid for an insurance contract as profit. Please proceed with your question. Well, thank you, all. Net premiums written is the sum of premiums written by an insurance company over time, minus premiums ceded to reinsurance, plus any reinsurance assumed. Policy form numbers, product features and availability may vary by state. So I don't want to spend too much time on the details. In this lesson we’re going to move through step one of our simplified P&C insurance company operating model. Written premiums may be measured as a gross or net number. And then just let me dive into that comment about this jurisdiction. Okay. A written premium is an accounting term in the insurance industry used to describe the total amount customers are required to pay for insurance coverage. Thanks for taking my questions. Are there opportunities there? Premiums per employee. These accidents in turn have a negative impact on your company's claims history and lost production time. As I've said in past calls, it is clear that the plaintiff bar continues to aggressively target the trucking industry. Total gross premiums. Now, I don't say that with any disrespect to any competitor who feels that they could charge 50% more for a less quality fleet, and perhaps make a profit doing that. Jon enjoyed working with his daughters ,whom he trained to sell insurance while they attended school. Fair enough. Our mission is safer roads and safer people, and we are deliberately targeting what we think are the better fleets. I.e. 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