When an insured decides to change her mode of premium payment from annually to monthly, the total premium due would:A. FluctuateB. IncreaseC. Remains the sameD. Decrease

correct option is B. Increase

Explanation:

solution

when change payment from annually to monthly

so premium due would be increase as in annual premium

because premium is paid at the start of the year where is in twelve monthly installment last premium is almost at the end of the year

So that, when the premium is paid on an annual basis insurance company is access to full premium at the start

it can be used for generating return

so correct option is B. Increase