Question

question 9 (4 points) what is the purpose of an insurance premium? a) to cover the cost of insurance claims b) to determine insurance claim amounts c) to request payment from an insurance company d) to set insurance coverage limits

Explanation:

An insurance premium is the amount of money an individual or business pays to an insurance company in exchange for insurance coverage. It is not for covering medical costs directly (that's what insurance payouts are for), not for determining claim amounts (which is based on policies and losses), and not for setting coverage limits (which are part of the policy terms). It is paid to the insurance company to maintain the insurance contract.

Answer:

c. To request payment from an insurance company (Note: This option seems to have some inaccuracy in the description in the original question as the main purpose of a premium is to pay for coverage and keep the policy in - force, but among the given options, this is the most related in the sense that paying the premium is a pre - requisite for being able to ask for payment from the insurer in case of a covered loss.)