Question

What is premium in the context of insurance?

a.

The amount paid by the insurer to the insured

b.

The amount paid by the insured to the insurer for bearing the risk

c.

The amount paid by the insured to the government

d.

The amount paid by the insured to the broker

Answer: (b).The amount paid by the insured to the insurer for bearing the risk Explanation:In the context of insurance, premium refers to the amount paid by the insured to the insurer for bearing the risk associated with the insurance product. It is the price paid by the insured for the coverage provided by the insurance policy.

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Q. What is premium in the context of insurance?

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