Question

Which alteration involves changing the mode of premium payment from monthly to yearly?

a.

Reduction in policy term

b.

Increase in sum assured

c.

Change from whole life plan to endowment plan

d.

From one mode of premium payment to another

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).From one mode of premium payment to another Explanation:Altering the mode of premium payment from monthly to yearly or vice versa is a common alteration in insurance policies.

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Q. Which alteration involves changing the mode of premium payment from monthly to yearly?
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