What happens when an insurance policy is backdated?

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What happens when an insurance policy is backdated?

A) The policy's elimination period is waived
B) The time frame for reinstating a lapsed policy is extended
C) The policy's probation period is earlier than the present
D) The policy's effective date is earlier than the present

Answer: D) The policy's effective date is earlier than the present

Health Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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