Small surcharges added to the cost of insurance policies when the insured chooses to pay the premiums more frequently than annually are known as insurance taxes.

Question

Small surcharges added to the cost of insurance policies when the insured chooses to pay the premiums more frequently than annually are known as insurance taxes.​

Quizplus · Accepted Answer

These are not taxes but rather installment fees or service charges for the convenience of paying premiums on a more frequent basis, such as monthly or quarterly, instead of annually.

Small Surcharges Added to the Cost of Insurance Policies When