Which policy type uses periodic reports to determine premium charges?

The policy type that uses periodic reports to determine premium charges is the reporting policy. This type of insurance is designed specifically for businesses or scenarios where the insured's exposure to risk can change frequently, such as in scenarios involving fluctuating inventory levels or varying payrolls.

In a reporting policy, the insured is required to provide regular reports that detail these changes to the insurer. The premiums are then calculated based on the data provided in these periodic reports, allowing for more accurate premium assessments that reflect the actual level of risk being covered during the policy period. This mechanism is beneficial because it helps ensure that the premium aligns with the insured’s actual exposure, rather than relying on estimates that could lead to overpayment or underpayment of premiums.

The other choices refer to different policy structures. A fixed premium policy has a set premium that does not change throughout the coverage period, a variable premium policy typically adjusts premiums based on investment performance or other factors, and a nonreporting policy does not require periodic submissions, therefore premiums are determined using fixed estimates rather than actual reports.