Q439
What does the term “premium” denote in relation to an insurance policy?
A.
Profit earned by the insurer
B.
Price paid by an insured for purchasing the policy
AnswerC.
Expenses incurred by an insurer on a policy
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
The term premium denotes the price that is paid by an insured for purchasing an insurance policy.