The ________ is the annual fee a firm pays the insurance company in exchange for compensation in the event of a random future loss.

Question

Quizplus · Accepted Answer

The insurance premium is the amount paid by the firm to the insurance company in exchange for coverage against potential future losses. It is an annual fee that is determined by the insurance company based on factors such as the nature of the risk, the expected loss, and the firm's previous claims history.

The ________ Is the Annual Fee a Firm Pays the Insurance