Life License Qualification Program (LLQP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Life License Qualification Program (LLQP) Exam. Study with flashcards and multiple choice questions, enhanced with hints and explanations. Master the content to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which provision allows a policyowner to pay premiums more than once a year?

Insuring
Consideration
Payor
Mode of Premium

The correct answer is: Mode of Premium

The provision that allows a policyowner to pay premiums more than once a year is referred to as the "Mode of Premium." This term pertains specifically to the frequency at which premiums are paid, which can include options like monthly, quarterly, semi-annually, or annually. By selecting a specific mode, the policyowner can choose a payment schedule that fits their financial situation and preferences. This provision is crucial because it offers flexibility in managing premium payments. Some individuals may prefer to pay premiums more frequently to better align with their cash flow, while others may choose to make larger, less frequent payments. Understanding this aspect of premium payments is key for policyowners as it impacts their budgeting and financial planning. The other options relate to different aspects of insurance but do not directly address the question of premium payment frequency. For instance, consideration pertains to the value exchanged within an insurance contract, insuring refers to the actual act of providing coverage, and payor generally relates to someone responsible for paying the premium, especially in the context of children's policies.