Final answer:
The first named insured is responsible for making premium payments for a commercial package policy. They are the main point of contact and handle payment, and any other financial responsibilities tied to the insurance policy. When actuarial fairness is considered, premiums must reflect the collective risk of the insured group.
Step-by-step explanation:
The individual responsible for making the premium payments due under a commercial package policy is the C) First named insured. This is the person or entity whose name appears first on the policy's declarations page. They are typically the primary contact and the one who has the authority to make policy changes and handle payment matters. In some cases, they may also have responsibilities like notifying the insurer of any losses or providing information when required. It's important to understand that while the first named insured is initially responsible for payment, other parties like additional named insureds might have their own agreements or contractual obligations that dictate their share of the premium costs. Such arrangements, however, are separate from the insurance company's agreement with the first named insured. When discussing actuarially fair premiums, such as those for life insurance, an actuarially fair premium is calculated based on the risk associated with a specific group. If the insurance company tries to charge an actuarially fair premium to the group as a whole rather than to each group separately, it would need to consider all risks collectively. This would typically lead to a premium that might not accurately reflect the individual risk levels of different subgroups within the larger population.