10
QuizMultiple Choice

Insurance Decisions and Risk Management — Quiz

Question 10 • Personal Finance

What is a premium?

Answer
A
total claim
B
coverage limit
C
deductible
D
regular payment for insurance

Explanation

A premium is the regular amount a person pays to keep an insurance policy active, often paid monthly or yearly. It is not the total amount of a claim, the maximum coverage, or the deductible paid when making a claim. The correct choice is “regular payment for insurance.”

AI-written and checked against the verified answer.