What is an insurance premium?

"The cost of filing an insurance claim" "The amount paid to the insurer for coverage" "The payout received after a covered loss" "The deductible paid before the insurer's contribution"

What factors influence the calculation of insurance premiums?

"Policyholder's age, health, lifestyle, and family history" "Current market trends and economic conditions" "Insurer's profitability and investment returns" "Number of insurance policies held by the individual"

How does a higher deductible impact insurance premiums?

"Increases premiums due to higher risk for the insurer" "Reduces premiums as the policyholder assumes a larger share of the loss" "Has no impact on premiums as deductibles are separate from premium calculations" "Leads to variable premiums depending on the type of insurance"

What is the primary purpose of an insurance pool?

"To invest premiums in profitable ventures" "To distribute risks among a larger group of policyholders" "To provide loans to policyholders in need" "To fund research and development in the insurance sector"

What is the relationship between the sum assured and insurance premiums?

"Higher sum assured generally leads to lower premiums" "Sum assured and premiums are independent of each other" "Higher sum assured typically results in higher premiums" "Sum assured is determined based on the premium paid"

What distinguishes flexible premium from level premium in insurance?

"Flexible premium allows adjustments to coverage and premium amounts" "Level premium offers more investment options for policyholders" "Flexible premium is only available for health insurance policies" "Level premium is generally more expensive than flexible premium"

Which premium payment frequency typically results in the lowest overall policy cost?

"Monthly" "Quarterly" "Semi-annually" "Annually"