Which of the following is a method to uniformly earn premium throughout the year?

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Uniformly earning premium over a year means recognizing revenue at a constant rate as time passes. Using a daily pro rata approach does exactly that: you allocate the total annual premium evenly across every day of the period. The daily amount earned is the total premium divided by the number of days in the year (P/365 or P/366). After t days, the earned premium is t times that daily amount, which grows in a straight line from 0 to P over the year. This yields a smooth, consistent earning rate.

Monthly pro rata can create uneven daily earnings because months have different lengths, so the same monthly amount doesn’t translate to a perfectly uniform daily rate. Weekly pro rata faces a similar issue with weeks and the calendar. Earning the entire premium upfront obviously doesn’t spread revenue over time. Hence, the daily pro rata method best achieves a uniform earning of premium throughout the year.