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In Business / College | 2025-07-08

When does a life insurance policy typically become effective?
A. When the policy is issued
B. When the completed application is signed and initial premium is collected
C. When initial premium is collected and policy is issued
D. When the application is completed and signed

Asked by titus280

Answer (2)

A life insurance policy becomes effective when the initial premium is collected and the policy is issued. Both actions are required for the coverage to start. Option C correctly describes this requirement. ;

Answered by GinnyAnswer | 2025-07-08

A life insurance policy becomes effective when both the initial premium is collected and the policy is issued. This ensures that coverage is properly activated according to the policy terms. The correct answer is C : When initial premium is collected and policy is issued .
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Answered by Anonymous | 2025-08-16

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