An individual signed a application for a $100,000 life insurance policy and paid the first premium on January 1st. The agent issued an issued a insurability receipt. A week later, the required medical examination proves the person insurance. If the person dies before the insurer approves the application:

An individual signed a application for a $100,000 life insurance policy and paid the first premium on January 1st. The agent issued an issued a insurability receipt. A week later, the required medical examination proves the person insurance. If the person dies before the insurer approves the application:



Answer: The coverage will be retroactively effective. As a result the beneficiary will receive $100,000 death benefit.

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