Law of Insurance Contracts
| This chapter was reviewed in March 2025. No corrections were found to be needed. The next review of this chapter is due in July 2025. |
Chapter 13
PREMIUM
13-1 INTRODUCTION
In contracts of insurance the consideration provided by the insured is usually money,1 and is usually referred to as premium. Premium “is a term of art” meaning “a sum of money paid by an assured to an insurer in consideration of his indemnifying the assured for loss sustained in consequence of the risk insured against”.2