Question

If the initial premium is paid at the time of the application on May 1st, the company issues the policy as a standard issue on May 30th, and the producer delivers the policy to the owner in June 5, when is coverage effective, assuming the conditional receipt was given and there was no medical exam required?

Answer 1

The coverage of the insurance policy is effective from the date of the initial premium payment.

Step-by-step explanation:

The coverage of the insurance policy is effective from May 1st, the day the initial premium was paid, assuming the conditional receipt was given and there was no medical exam required. The policy was issued on May 30th and delivered to the owner on June 5th, but the coverage is retroactively effective from the date of the application.