New 55% Off on All Courses - Enroll Now! Click Here

    Question

    The insurance companies collect a fixed amount from its

    customers at a fixed interval of time. What is it called?
    A Instalment Correct Answer Incorrect Answer
    B Contribution Correct Answer Incorrect Answer
    C Premium Correct Answer Incorrect Answer
    D EMI Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is income for the insurance company, once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy.

    Practice Next