What term describes a factor in determining the premium charged and the amount of insurance required?

The term that accurately describes a factor in determining the premium charged and the amount of insurance required is the loss ratio. The loss ratio is a key metric used in the insurance industry, calculated by dividing the total losses paid out in claims plus adjustment expenses by the total earned premiums. This ratio helps insurers evaluate the profitability and financial stability of their underwriting practices.

In terms of premium determination, a higher loss ratio indicates that a larger portion of the premiums collected is being paid out in claims, which could lead an insurance company to increase premiums to maintain profitability. Conversely, a lower loss ratio may suggest effective underwriting and lower risk, which could allow insurance companies to keep premiums stable or even lower them.

The other options do not pertain directly to the assessment of premiums. Loss adjustment refers to the process of settling claims and determining the loss amount, loss valuation is about determining the value of a loss rather than assessing overall risk, and insurance demand refers to the desire for insurance coverage based on perceived risks rather than the statistical assessment of premiums and claims.