JAMB Commerce 2003 Question 13

Question 13

Insurance

The payment made periodically in respect of an insurance policy entered into is known as

  1. A.bond
  2. B.commission
  3. C.premium
  4. D.surrender value
Show the answer and explanation

Answer: C (premium)

Explanation

The premium is the regular payment the insured makes to the insurer to keep the policy running.