Question

Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?

The contract is not in force without the initial premium being paid
A partial initial premium is acceptable
The insured has no advantage to pay the initial premium at the time of application
A claim must be honored by the insurer even if an initial premium is not paid

Answer 1

The contract is not in force without the initial premium being paid.

Step-by-step explanation:

The statement that is true is: The contract is not in force without the initial premium being paid. The initial premium is a payment made to the insurance company to initiate and activate the health insurance policy. Without the initial premium being paid, the contract is not considered valid, and the insurance coverage does not begin.