Completing the Application, Underwriting, Delivering Policies, Contract Law
A client applies for life coverage without a temporary receipt. The insurer approves and issues the policy as applied for. Under standard application provisions, when does company liability actually begin?
Answer and explanation
Answer: A. The standard application agreement conditions company liability on issuance, delivery to and acceptance by the owner, and full payment of the first premium while each proposed insured is alive.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(d)(i)–(ii)
More completing the application, underwriting, delivering policies, contract law questions
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