The correct answer is: B. The state of health of the policyholder.
A premium is a sum of money paid to an insurance company in exchange for financial protection against specified risks. The amount of the premium depends on a number of factors, including the type of insurance, the amount of coverage, the insured’s age and health, and the insurer’s risk assessment.
The state of health of the policyholder is one of the most important factors in determining the premium. People who are in good health are generally considered to be lower risks, and therefore they pay lower premiums. People who have health problems, on the other hand, are considered to be higher risks, and therefore they pay higher premiums.
The other options are not correct because they are not factors that affect the premium. The place of worship visited by the person to be insured, the decision of the underwriter, and the report of the agent are all irrelevant to the amount of the premium.
In addition to the factors mentioned above, the premium may also be affected by the insurer’s financial strength, the type of policy, the deductible, the coverage limits, the length of the policy term, and the policyholder’s credit score.