Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?

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Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?

A) The contract is not in force without the initial premium being paid
B) A partial initial premium is acceptable
C) The insured has no advantage to pay the initial premium at the time of application
D) A claim must be honored by the insurer even if an initial premium is not paid

Answer: A) The contract is not in force without the initial premium being paid

Health Insurance

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