Which insurance term is correctly paired with its definition? A) prem

QUESTION

Which insurance term is correctly paired with its definition?

A) premium: a notice by the insured to the insurer that payment is expected to cover a loss
B) reserves: the specified amount that a policyholder must pay toward a loss before the insurer will pay anything
C) deductible: funds received from premiums and left over after expenses that are used for investment purposes
D) claim: the fee that the insured pays the insurer to maintain the insurance policy
E) insurance policy: written contract between insurer and insured that, in return for regular payments, promises to pay for all or part of a loss

ANSWER

Answer: E
Explanation: E) An insurance policy is a written contract between insurer and insured that, in return for regular payments, promises to pay for all or part of a loss.