Which of the following statements is true about 'premium'?

The statement indicating that the premium is periodically paid for ongoing coverage under the policy accurately reflects the nature of insurance premiums. In most insurance agreements, policyholders pay a premium regularly—usually monthly, quarterly, or annually—to maintain their insurance coverage. This ongoing payment ensures that the insurer remains liable to provide coverage in case of a claim.

Premiums are calculated based on various factors, including the risk profile of the insured, the coverage amount, and the insurer’s underwriting criteria. This structure allows insurers to collect funds continuously, which they use to pay for claims made by insured parties.

The other statements do not accurately describe how premiums function. For instance, a premium is not a one-time fee; most insurance policies require regular premium payments to stay in effect. Additionally, while premiums can influence an insurer's market share, they do not directly determine it, as market share is affected by many other factors, such as competition and overall market conditions. Therefore, the periodic nature of premium payments truly encapsulates its purpose in providing consistent coverage.