231. What does the term “premium” denote in relation to an insurance policy?

A) Profit earned by the insurer
B) Price paid by an insured for purchasing the policy
C) Price paid by an insured for purchasing the policy
D) Expenses incurred by an insurer on a policy
✅ ANSWER: B
The term premium denotes the price that is paid by an insured for purchasing an insurance policy.

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