Life Policy ProvisionsQuestion 574 of 716
When an application is submitted WITHOUT the initial premium, coverage generally does not take effect until:
a.The medical examination is merely scheduled
b.The application is signed by the applicant and the producer forwards it to the home office for underwriting review, approval, and issuance
c.The producer mails the application to the insurer
d.The policy is delivered, the first premium is collected, and any required statement of continued good health is obtained
Explanation
With no premium submitted, the insurer's offer is the issued policy, and acceptance occurs at delivery when the first premium is paid and good health is confirmed. Signing, mailing, or scheduling an exam does not put coverage in force.
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)