Question on: JAMB Commerce - 2024

The sum which the insured pays periodically to his insurance company is called

A

A commission

B

An indemnity

C

A policy

D

A premium

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Correct Option: D

The correct answer is D. a premium.

  • Premium: This is the payment made by the insured to the insurance company for coverage.
  • Commission: Fee paid to an agent for selling the insurance policy.
  • Indemnity: Compensation the insurance company provides to the insured in case of a loss.
  • Policy: Document outlining the terms of the insurance contract.

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