What term describes the money exchanged between the insured and the insurer in a contract?

The term that describes the money exchanged between the insured and the insurer in a contract is "consideration." In the context of insurance contracts, consideration refers to the value that both parties agree to exchange. For the insurer, this is typically the premium that the insured pays, while for the insured, the consideration is the promise of coverage in the event of a loss.

Both parties must provide consideration for the contract to be valid, creating a mutual exchange that underpins the agreement. Without this element, the contract might not be enforceable, as contracts must include consideration to be legally binding.

While the premium is indeed the specific amount paid by the insured for the policy and is a vital component of the consideration, it is not the term that encompasses the broader exchange of value integral to the contract's formation. The deductible and policy limit refer to specific aspects of the insurance coverage rather than the foundational term that describes the mutual exchange of value, which is why they are not applicable in this context.