An insurance benefit is
A) The contract that reduces the financial loss associated with some risky event
B) The amount of money a policy holder pays for the insurance policy
C) The amount of money a policy holder receives if a specific loss occurs
D) The probability of loss from a specific event

Question

Quizplus · Accepted Answer

An insurance benefit refers to the amount of money that a policyholder would receive if a specific loss event occurs. It is the compensation that the insurer would provide to the policyholder to reduce the financial impact of the loss. Therefore, option C is the correct choice. Option A refers to the insurance contract itself, while option B refers to the premium paid by the policyholder. Option D refers to the probability of loss, which is not related to insurance benefits.

An Insurance Benefit Is