Question

What is required for premium payments in level premium policies?

a.

Premium may vary over the term of the policy

b.

Acceptance of any amounts less than the due regular premium

c.

Ad hoc payments treated as regular premiums

d.

Uniform premium payable throughout the premium paying term

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).Uniform premium payable throughout the premium paying term Explanation:In level premium policies, the premium chosen at the outset shall remain uniform and not vary over the term of the policy, according to the regulations.

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Q. What is required for premium payments in level premium policies?
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