Practice Quiz

Health and Life Insurance

Category - Annuities & Policies

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A binding receipt makes the company liable for risk from the date of application. What is the typical specified time limit of coverage prior to the policy being issued or denied?
  1. 7- 21 days
  2. 14-28 days
  3. 30 -60 days
  4. 60-90 days
Explanation
Answer: C - The specified time limit is 30- 60 days for the insurer to cover the applicant. If something happens to the applicant during this time, the insurance company pays the beneficiary as they would for the policy. This type of coverage is rare for life insurance policies, but more common in home and auto.
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