Part of the insurance premium is a charge levied by government on the insured party.These amounts are to be treated as a liability by the insurer.

Question

Quizplus · Accepted Answer

This statement is true. Governments often impose taxes and levies on insurance policies, which are then passed on to the insured party as part of the premium. These amounts are considered a liability for the insurer because they must be collected and remitted to the government.

Part of the Insurance Premium Is a Charge Levied by Government