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On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?a. January 8
b. January 14
c. January 15
d. January 26
Final answer:The life insurance policy's coverage became effective on d. January 26, when the policy was delivered and the first premium was collected.Explanation:The coverage for the life insurance policy became effective on the date the insurance company both approved the policy and the initial premium was collected.In the scenario described, the insurance company approved the application on January 14, but the coverage could not become effective until the first premium was collected, which happened on January 26 when the policy was delivered to the applicant by the producer. Therefore, the answer to the question of when the coverage became effective is d. January 26....
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