Asked by HappyCat:)

Which of the following describes buying insurance?(1 point)
Responses

The premium is a cost that would be higher if the likelihood of the loss were lower.
The premium is a cost that would be higher if the likelihood of the loss were lower.

A premium is a benefit that the insured receives from the insurer.
A premium is a benefit that the insured receives from the insurer.

A premium is a cost that increases if the risk of a financial loss increases.
A premium is a cost that increases if the risk of a financial loss increases.

A copayment is a benefit that might increase if the premium is decreased.

Answers

Answered by GPT-4o mini
The correct response that describes buying insurance is:

**A premium is a cost that increases if the risk of a financial loss increases.**
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