Abstract
This paper shows the relevance between concept ‘premium’ and concept ‘risk’ of the new Insurance Contract Act of Japan in the light of commercial science of insurance. First, I mention that this act has the definition clause concerning ‘insurance contract,’ which describes the ‘premium’ as ‘calculated in proportion to the probability of occurrence of such a specific cause.’ This expression may be understood to limit the insurance risk to frequency risk, but it should be understood to include severity risk. Second, I mention that the articles of this act concerning ‘risk’ should also be understood to include severity risk, because this act has the similar definition clause concerning ‘risk’ to that of ‘premium.’
