2016 SPRING #2
Why is policy C considered the full premium even though it's a 6-month policy? I thought we were suppose to consider half of the premium for 6 month policies when get the WP and EP? Is it because we were suppose to notice the "full term written premium"?
Comments
They were trying to trick you here. When they say "full-term" premium, it doesn't mean "annual" premium. Full-term refers to the actual policy term, which for policy C is 6 months. In other words, the policyholder paid $1,000 for 6 months of coverage.
Got it, thanks!
You're welcome!