Which statement is true about premiums in insurance policies?

The statement about premiums in insurance policies being typically fixed for level policies is accurate because level premiums offer a consistent payment structure throughout the life of the policy. This means that the insured pays the same amount each period (monthly, annually, etc.) for the duration of the coverage, making it easier to budget and plan for costs.

In contrast, variable premiums can fluctuate due to various factors, such as changes in the insured’s risk profile or adjustments in the cost of coverage based on market conditions, making the first option less accurate. The idea that premiums are the same for all types of policies is misleading because premiums can vary widely based on the type of coverage, the risks involved, and underwriting criteria. Lastly, the notion that premiums are only paid when a claim is filed misrepresents how insurance works; premiums are paid upfront to maintain coverage and do not depend on claims.