Which term is commonly used to denote the annual price paid for an insurance policy?

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Study for the State Finance Challenge Test. Prepare with quizzes and multiple choice questions, each offering hints and explanations. Enhance your understanding and get ready for success!

Multiple Choice

Which term is commonly used to denote the annual price paid for an insurance policy?

The term used for the annual price you pay to keep an insurance policy is premium. It’s the cost charged by the insurer for providing coverage and transferring the risk to the insurer. While some policyholders pay monthly or quarterly, the amount quoted as the policy’s price is the premium itself. A discount is a reduction in price, liquidity is about how quickly assets can be turned into cash, and municipal refers to governments or municipal bonds. The premium specifically names the price for insurance protection.

Which term is commonly used to denote the annual price paid for an insurance policy?

Study for the State Finance Challenge Test. Prepare with quizzes and multiple choice questions, each offering hints and explanations. Enhance your understanding and get ready for success!

Which term is commonly used to denote the annual price paid for an insurance policy?

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