Comprehensive and Detailed Step by Step Explanation:

Theinsurer’s expensesare a critical factor in premium calculations. Insurers must cover operational costs, claims payouts, reserves, and regulatory compliance while ensuring profitability.

Insurer (B):Correct. Expenses such as underwriting, administrative costs, and agent commissions are incorporated into the premium.

Producer (A):Costs are included indirectly through commissions but are not a direct factor.

Policy beneficiary (C):Plays no role in premium determination.

Policy owner (D):Pays the premium but does not influence expense considerations.