premium

[Lat. præmium=profit, reward, prop.=a taking before, from præ =before, and emo =to take, to buy.] I. Ordinary Language : 1. A reward, a recompense; something given or paid in return for something else done or given: (1) A prize offered for competition; a reward for some specific act. (2) A bonus; an extra sum paid or offered as an incentive. (3) A fee paid for the privilege of learning some trade or profe ion. 2. Interest or bonus paid for the loan of money. "People were tempted to lend, by great premiums and large interest." -Swift : Miscellanies. II. Commercial , & c.: 1. In currency , the premium on gold or silver is the difference of value between gold and silver coins and paper notes of the same nominal amount. Thus, when the United States gold dollar was at a premium of 25, it meant that 125 paper dollars were given for 100 gold dollars. 2. In insurance , a sum periodically paid by the person insured in order to secure a stated sum of money from the society to whom the premium is paid, in case of damage by fire, or by lo of a ve el or goods at sea; or, in case of life insurence, the sum periodically paid in order to secure the payment to the representatives of the person insured of stated sum in case of the death of the person whose life is insured. [ASSURANCE, INSURANCE, IMG:content-1477.jpg:[blocks in formation] Premium is sometimes used adjectively, in the sense of prize or prize-taking; as, a premium flower. At a premium: 1. Lit .: [PREMIUM, II.3.]. 2. Fig .: Enhanced in value; difficult to get or attain except at a higher price than usual. "Accommodation is already at a premium."-London Daily Chronicle.