Match each life insurance application scenario to its legally correct effective date outcome or delivery protocol.
- A software engineer submits an application and initial premium on October 2. No medical exam is needed.Coverage takes effect on October 2; no Statement of Good Health is required at delivery.
- A plumber applies on November 5 without submitting a premium. The agent delivers the issued policy on November 20.Coverage takes effect on November 20 upon premium payment and signature on a Statement of Good Health.
- A teacher pays the premium on January 10, completes a required medical exam on January 14, and dies on January 18 before policy issuance.The death benefit is paid because coverage became conditionally effective on January 14.
- An accountant applies without premium on March 1 and suffers a severe stroke on March 10 prior to policy delivery.No coverage goes into effect because the applicant cannot attest to continued insurability upon delivery.
Answer
The correct matches align the initial premium payment timing and medical exam requirements with their corresponding legal effective dates and required delivery protocols.
The effective date of a life insurance policy is determined by the timing of the initial premium payment. If paid with the application, a conditional receipt generally binds coverage as of the application date or the required medical exam date (whichever is later). If not paid with the application, coverage is delayed until the agent delivers the policy, collects the premium, and obtains a signed Statement of Good Health.
Step-by-Step Solution
Key Concept
Effective Date and Statement of Good Health