The fee that insurance companies collect in exchange for covering unpredictable costs is called a:
A) premium.
B) ultimatum.
C) prepaid event charge.
D) preventative payment.

Question

Quizplus · Accepted Answer

The term used for the fee collected by insurance companies in exchange for covering unpredictable costs is "premium". It is a regular payment made by the policyholder to the insurer to keep the coverage active. The amount of the premium depends on various factors, including the type of insurance policy, the deductible amount, the coverage limits, and the policyholder's risk profile.

The Fee That Insurance Companies Collect in Exchange for Covering