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

Question

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.

Answer 1

The correct response that describes buying insurance is:

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