SEO MCQ Question Page

Which statement best explains Premium?

Practice this MCQ with options, instant answer checking, explanation, exam-wise filters, next/previous navigation and shareable result image.

Question ID #26062 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Insurance Sectional Test 2026 Medium

Correct Answer: C. Consideration paid for insurance coverage
Premium: Consideration paid for insurance coverage

Question: Which statement best explains Premium?

A. Dominant effective cause used to determine whether a loss falls within policy coverage

B. Person or entity that owns an insurance policy

C. Consideration paid for insurance coverage

D. Risk-transfer arrangement under which an insurer provides financial protection in return for premium

Correct Answer: C. Consideration paid for insurance coveragePremium: Consideration paid for insurance coverage

Which statement best explains Premium? - MCQ Explanation

This question is useful for exam preparation because it provides direct multiple-choice practice with options, answer checking and explanation.

Correct answer: C. Consideration paid for insurance coverage