When a policy application is accompanied by a check for the first premium but no conditional receipt is issued, what determines effective coverage?

When a policy application is accompanied by a check for the first premium but no conditional receipt is issued, what determines effective coverage?

• A. The application date
• B. The delivery date
• C. The issue date
• D. The date of the physical examination

Answer: (B)

When there is no conditional receipt, there is no temporary or immediate coverage from the time the application is filed or the first premium is paid. The policy becomes effective only when it is delivered to and accepted by the insured. In this scenario, the moment the policy is delivered is the date that determines when coverage starts. The other dates—application date, issue date, or the date of the medical exam—do not establish coverage by themselves without a conditional receipt. The delivery date marks the point at which the contract goes into force, assuming the policy is in force and issued.

When there is no conditional receipt, there is no temporary or immediate coverage from the time the application is filed or the first premium is paid. The policy becomes effective only when it is delivered to and accepted by the insured. In this scenario, the moment the policy is delivered is the date that determines when coverage starts. The other dates—application date, issue date, or the date of the medical exam—do not establish coverage by themselves without a conditional receipt. The delivery date marks the point at which the contract goes into force, assuming the policy is in force and issued.