Final answer:
The statement that a deposit premium is an estimated premium paid at the policy issue is incorrect. Deposit insurance, as provided by the FDIC in the U.S., requires banks to pay insurance premiums based on their level of deposits and financial risk, not on an estimated amount at the start of policy.
Step-by-step explanation:
All of the following are true regarding deposit premium EXCEPT for the claim that it's an estimated premium paid at the policy issue. In the context of deposit insurance, which is operated by institutions like the Federal Deposit Insurance Corporation (FDIC) in the United States, the deposit insurance system ensures that depositors in a bank do not lose their money, even if the bank fails. Banks pay an insurance premium to the FDIC, which is based on the bank's level of deposits and adjusted according to the riskiness of a bank's financial situation.
For example, in 2009, a bank with high net worth and consequently lower risk may have paid between 10-20 cents for every $100 of bank deposits in insurance premiums. On the other hand, a riskier bank with a very low net worth might have paid between 50-60 cents for every $100 in bank deposits. This demonstrates that the insurance premium is not merely an estimated amount paid at the beginning but is carefully calculated based on several risk factors. Thus, the statement about the deposit premium being an estimated premium paid at the policy issue does not hold true in this context.