What term describes an insurance policy paid by a fee premium?

The term that describes an insurance policy paid by a fee premium is "insured policy." An insured policy refers to a specific agreement between the insurer and the insured, where the policyholder agrees to pay a premium in exchange for financial protection against certain risks or losses specified in the policy. This financial arrangement allows the policyholder to maintain coverage and receive benefits when needed, thus establishing the connection between the premium payment and the protection afforded by the policy.

In this context, understanding the nature of an insured policy is crucial for those studying credit insurance. It emphasizes the relationship between premium payments and the coverage provided, which is essential knowledge for insurance producers in Michigan or any state.