The additional rate or premium charged by the insurer to pay for additional perils insured under a commercial property insurance policy is called:
Understand the Problem
The question is asking for the term used to describe the additional rate charged by an insurer for extra coverage in a commercial property insurance policy. This involves understanding specific terminology related to insurance practices.
Answer
b) a loading.
The final answer is b) a loading.
Answer for screen readers
The final answer is b) a loading.
More Information
In insurance, 'loading' refers to an additional charge added to the basic premium to cover additional risks or perils.
Tips
A common mistake is confusing 'loading' with 'surcharge,' where a surcharge often refers to adjustments based on risk factors, not specifically additional perils.
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