Question

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company; however, the check was never signed by the applicant. If the application is approved, when will coverage be effective?

A) On the date the check is signed
B) On the date of the application
C) On the date the check is cashed
D) On the date the policy is issued

Answer 1

Coverage for life insurance typically becomes effective on the date the policy is issued, assuming that payment has been made and all other requirements have been fulfilled. An unsigned check would need to be rectified before the policy can be put in force.

Step-by-step explanation:

If K is an agent who takes an application for individual life insurance and accepts a check from the client, but the check was never signed by the applicant, the effective date of coverage is contingent upon the insurance company's policies regarding premium payments and the initiation of coverage. However, typically, the coverage becomes effective on the date the policy is issued, provided all the other requirements for coverage to commence have been met, including the payment of the premium.

Therefore, among the options provided, answer (D) On the date the policy is issued is most likely to be correct. This assumes that the unsigned check issue has been resolved, and the premium has been successfully paid to the insurance company. Without a valid, signed check or another form of payment, the insurance company would not typically consider the premiums paid, and the policy would not be in force. Once everything is in order, including the receipt of payment, the insurance company would issue the policy, and that's when the coverage would usually start.