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Zorluk: KolayInitial Premium and Premium Receipts

An applicant completes a life insurance application, pays the initial premium in full, and receives a conditional receipt on May 1st. The insurer requires a medical examination, which the applicant successfully completes on May 4th. The applicant is ultimately approved as a standard risk on May 10th. Based on these events, when did the life insurance coverage actually take effect?

  1. May 4th, the date the medical examination was completed.Cevap
  2. B
    May 1st, the date the application was signed and the premium was paid.
  3. C
    May 10th, the date the insurer's home office officially approved the application.
  4. D
    The date the policy is physically delivered to the applicant by the producer.

Cevap

May 4th, the date the medical examination was completed.
When a conditional receipt is issued and a medical examination is required, coverage becomes effective on the date of the application or the date of the medical exam, whichever occurs later, provided the applicant is ultimately found insurable as applied for. Since the exam was completed on May 4th, coverage began on that day.

Adım Adım Çözüm

1
Identify the type of receipt issued when the initial premium was paid.
A conditional receipt was issued.
The receipt type dictates the rules for when coverage retroactively begins.
2
Determine if any further underwriting actions by the applicant were required.
A medical examination was required and completed on May 4th.
Under a conditional receipt, coverage is not effective until all application requirements, including medical exams, are fulfilled.
3
Apply the conditional receipt effective date rule.
Coverage takes effect on the later of the application date (May 1st) or the medical exam date (May 4th), provided the risk is approved.
Since May 4th is the later date, and the applicant was approved as a standard risk, coverage began on May 4th.

Anahtar Kavram

Conditional Receipt Effective Dates
Tahmini Süre:45s
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Konular

Initial Premium and Premium Receipts

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