What is the process of determining the premium charged and the amount of insurance required for a specific loss called?

The process of determining the premium charged and the amount of insurance required for a specific loss is known as loss valuation. This process involves assessing the worth of the potential loss, which in turn helps in setting appropriate insurance coverage and premiums. Loss valuation takes into account factors such as the type and value of the property, the potential risks it may face, and historical data related to similar losses. This assessment ensures that the insured party is adequately compensated in the event of a loss and that the insurer can charge a premium that reflects the actual risk involved.

Other choices may focus on related aspects of insurance but do not describe the specific process of valuing losses for premium determination and coverage purposes. For instance, loss assessment typically refers to evaluating damages after an event occurs, and risk evaluation pertains to understanding the likelihood and impact of various risks without directly correlating it to insurance premium and coverage requirements. Premium calculation generally deals with the arithmetic involved in determining costs but does not encapsulate the broader assessment involved in loss valuation.