Answered

If an applicant submits the initial premium with an application, which action constitutes acceptance?

A. The underwriters approve the application.
B. The producer delivers the policy.
C. The insurance company receives the application and initial premium.
D. The applicant submits a statement of good health.



Answer :

GinnyAnswer

Final answer:

Submitting the initial premium with an application indicates acceptance by the insurance company.


Explanation:

The action that constitutes acceptance when an applicant submits the initial premium with an application for insurance is C. The insurance company receives the application and initial premium.

When an applicant submits the initial premium, it is a crucial step in the application process. This action signifies the formal beginning of the insurance contract, indicating that the applicant is serious about obtaining coverage.

Receiving the application and premium allows the insurance company to initiate underwriting processes and proceed with issuing the policy based on the terms and conditions agreed upon.


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