When is the earliest a policy may go into effect?

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When is the earliest a policy may go into effect?

A. After the underwriter reviews the policy

B. When the application is signed and a check is given to the agent

C. When the first premium is paid and the policy has been delivered

D. When the insurer approves the application

Answer: B. When the application is signed and a check is given to the agent

Life 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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