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
C
Price paid by an insured for purchasing the policy
D
Expenses incurred by an insurer on a policy
Correct Answer: Price paid by an insured for purchasing the policy
The term premium denotes the price that is paid by an insured for purchasing an insurance policy.