Which of the following is NOT a characteristic of an insurance premium?

The correct answer is that an insurance premium is not a one-time payment. Insurance premiums are typically ongoing costs that policyholders pay regularly, often monthly or annually, to maintain their coverage. This structure allows insurers to pool funds and manage risk over time, ensuring that funds are available to pay claims when they arise.

In contrast, the other options highlight key characteristics of insurance premiums. They vary based on risk factors, meaning premiums can be higher for individuals considered a higher risk, such as those with a history of claims or unsafe practices. Additionally, premiums can change with policy adjustments due to changes in coverage levels or the introduction of new risk assessments. These aspects collectively underscore the nature of premiums as ongoing financial commitments based on risk evaluation and policy terms.