Question

How does the concept of level premiums apply to general insurance policies?

a.

Level premiums are a common feature in general insurance policies.

b.

General insurance policies are typically long-term, so level premiums are necessary.

c.

Level premiums do not apply to general insurance policies as they are usually short-term.

d.

The concept of level premiums is the same for both general and life insurance policies.

Posted under L01 What Life Insurance Involves IC38 Life Insurance Agent Exam

Answer: (c).Level premiums do not apply to general insurance policies as they are usually short-term. Explanation:The concept of level premiums does not apply to general insurance policies as they are typically short-term and expire annually. Level premiums are a feature specific to long-term life insurance policies.

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