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5.2.4 Quiz: Insurance
Question 8 of 10
The monthly cost to receive insurance coverage is known as a(n).
A. premium
OB. liability
OC. application
D. deductible



Answer :

GinnyAnswer
In the context of insurance, the monthly cost to receive insurance coverage is known as a premium. The premium is the amount of money an individual or entity pays to an insurance company in exchange for insurance coverage. It is usually paid on a regular basis, such as monthly, quarterly, or annually, depending on the terms of the insurance policy. The premium amount is determined based on various factors such as the type of insurance coverage, the level of coverage desired, the risk profile of the insured individual or property, and other relevant considerations. Essentially, the premium serves as the price of the insurance policy, ensuring that the insured party is protected against potential financial losses covered by the policy in exchange for the payment made. Understanding the concept of a premium is essential when considering different insurance options, as it directly influences the cost of obtaining insurance coverage and the extent of protection provided by the policy. By knowing what a premium is and how it is calculated, individuals can make informed decisions when selecting insurance plans that best suit their needs and budget.
IYesntMath

The correct answer is A. premium.

In the context of insurance, a premium is the amount of money that an individual or business pays to an insurance company regularly (usually monthly, quarterly, or annually) in exchange for insurance coverage. It is the cost of purchasing and maintaining an insurance policy.

The other options are related to insurance but have different meanings:

B. liability - the state of being legally responsible for something, such as damages or losses.

C. application - a formal request to an insurance company for coverage.

D. deductible - the amount an insured party must pay out-of-pocket before the insurance company covers the remaining costs of a claim.