PSI Ohio Insurance Practice Exam

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Study for the Ohio Insurance Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Excel in your exam!

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Which term refers to how often a premium is paid?

Mode
Premium Rate
Frequency
Payment Schedule

The correct answer is: Mode

The term that refers to how often a premium is paid is "Mode." In insurance terminology, "mode" specifically describes the frequency at which premium payments are made, such as annually, semi-annually, quarterly, or monthly. Understanding mode is crucial for insurance policyholders because it impacts their budget and overall cash flow, allowing them to choose a payment schedule that best fits their financial situation. While "Premium Rate" refers to the cost of the insurance coverage, "Frequency" is more general and does not specifically denote the required payments for premiums. "Payment Schedule" might imply the planned timing of payments but does not have the specificity of the term "Mode." Thus, "Mode" is the most precise term used to describe how often premiums are paid in the context of insurance policies.