Life Insurance Basics
What determines the effective date of coverage where no premium accompanies the application?
Answer and explanation
Answer: C. Without a premium at application there is no conditional receipt, so coverage begins on delivery against payment, subject to the insured's continued good health. Signature, approval and transmission do not put the insurance in force.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, effective date of coverage
More life insurance basics questions
- What gives a permanent policy its cash accumulation feature?
- What is a participating life insurance policy?
- What is an attending physician statement used for in underwriting?
- What is life insurance used for in estate conservation?
- What is required when an insurer issues a policy on terms different from those applied for?
- What is the blackout period in survivor income planning?
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